Oil may end the week with the highest growth since March

Oil prices accelerated their growth on Friday, reaching $95.88 per barrel. Thus, the quotes may end the week with the maximum rise since March – after OPEC+ announced a reduction in production.

The current price of Brent oil is $95.62 per barrel. North American WTI crude oil rose during trading to the level of $89.99 per barrel. Both grades can end the week with a rise of more than 11%: Brent has risen by 11.3%, WTI – by 12% over the past five trading sessions.

The oil market has been on the rise since Monday: first on expectations of the OPEC+ decision, and then on the decision itself. The ministers of the alliance countries on Wednesday approved a reduction in the quota for oil production in November by 2 million b/d relative to September. This was the maximum decrease since the beginning of the coronavirus pandemic.

Analysts note that further production cuts may accelerate the adoption of a price ceiling for Russian oil by Western countries. At the same time, Russia has already warned that it will not sell raw materials to countries that have joined this initiative. And this threatens a potential shortage of supply and pushes the quotes up. 

It is possible that oil prices may easily return to the level above $100 per barrel next year, including due to a decrease in supply and an increase in demand in China.