Oil prices rise as OPEC+ panel keeps output restrictions in place

5 Oct 2023 , 09:15 AM

After a decision by an OPEC+ panel to extend oil output restrictions to keep supplies tight despite worries about an impending slowdown in global economic growth, oil prices gradually increased in early trade on Thursday, recovering some of the significant losses from the previous session.

Brent crude oil futures were up 11 cents to $85.92 a barrel, while WTI was up 7 cents to $84.29 at the same time.

Following a meeting of the OPEC+ panel, which consists of OPEC and its allies led by Russia, oil prices decreased by more than $5 on Wednesday as a worsening macroeconomic outlook and the destruction of gasoline demand came into focus.

The OPEC+ ministerial panel did not alter the group’s policy regarding oil output, and Saudi Arabia announced it will maintain a voluntary export cap of 300,000 barrels per day (bpd) until the end of December while Russia would maintain a voluntary export cap of 1 million barrels per day (bpd) until the end of 2023.

On the other side, a survey that showed demand declining in September at the sharpest rate in almost three years as consumers reined in spending amid rising borrowing costs and prices suggests that the euro zone economy likely contracted last quarter.

Although new orders in the U.S. services sector decreased to a nine-month low in September, the pace was still consistent with forecasts for strong third-quarter economic growth.

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