The Benchmark US oil prices ended Friday at their highest closing level in three monthsin a market increasingly convinced that Saudi Arabia and Russia will maintain their production cuts.
The barrel of West Texas Intermediate (WTI) for September gained 1.87%, to 77.07 dollars, a peak from late April to closing. “The market is focused on Opec+ production cuts,” Opec and its allies, said Andy Lipow of Lipow Oil Associates.
Saudi Arabia announced in June a reduction of one million barrels a day from its production in July, before signaling that it would do the same in August; while Russia promised to reduce its exports by 500,000 barrels per day next month.
“We can expect supply to contract further in August, with a further decline in Russian exports,” they said in Commerzbank analysts.
Uncertainty about world demand, mainly due to the evolution of the Chinese economy, continues to limit price rises.
In additionthe price of a barrel of Brent oil for delivery in September ended on Friday in the London market at 81.07 dollars, 1.8% more than at the close of the previous session. The North Sea crude, a reference in Europe, ended the day with a rise of 1.43 dollars compared to the last negotiation, when it ended at 79.64 dollars.
European oil gained ground on the possibility that the Chinese central bank would propose stimulus measures to boost the slowing economy of the Asian giant.