Oil prices rise on expectations of OPEC+ production cuts

World oil prices started to rise on Thursday after a slight decline the day before. The current Brent quote is $88.60 per barrel. WTI oil is trading at $82.20 per barrel. 

The prices are supported by expectations of a possible production cut from OPEC+. Earlier it became known that the member states of the alliance began discussing an additional reduction in oil production for November, which may be announced at a meeting on October 5. At the same time, Russia may propose to the alliance to reduce oil production by about 1 million barrels per day.

Additional support for the market was provided by yesterday's data on crude oil inventories in the United States. In particular, commercial reserves of raw materials in the country unexpectedly decreased by 0.2 million barrels, to 430.6 million barrels. It is noted that the strategic reserve is at a minimum since July 1984 – 422.6 million barrels.

In addition, traders are monitoring the situation in the Gulf of Mexico, where a category 4 hurricane Ian is approaching. Due to bad weather in the gulf, the operation of oil production facilities with a volume of about 190 thousand barrels per day was suspended, which is about 11% of all production in the region.