Oil prices rose on Monday after it was confirmed Saudi Arabia AndRussia, the two largest oil exporting countries in the world, will continue the voluntary reduction in supplies until the end of the year. While gold prices began the week’s trading with a decline, the markets are still dominated by fears of an escalation of the aggression against… Gaza strip.
In today’s early trading, Brent crude futures rose $1.03, or 1.21%, to $85.92 per barrel, while US West Texas Intermediate crude reached $81.58 per barrel, up $1.07, or 1.33%.
A source at the Saudi Ministry of Energy said in a statement that the Kingdom confirmed yesterday that it will continue the voluntary reduction in its production by one million barrels per day next December, keeping production at 9 million barrels per day. He stressed that this voluntary reduction comes to strengthen the precautionary efforts made by OPEC Plus countries (which includes members OPEC And producers outside it, including Russia) with the aim of supporting the stability and balance of oil markets.
Moscow also announced the continuation of a voluntary reduction in supplies by 300,000 barrels per day of its exports of crude oil and petroleum products until the end of next December.
ING analysts said in a note that the oil market will achieve a surplus in the first quarter of next year, adding that this “is likely to be enough to convince the Saudis and Russians to continue the cuts.”
However, a decline in crude consumption at Chinese refineries could limit gains.
Crude prices are currently witnessing support due to the ongoing Israeli aggression on the Gaza Strip, which threatens to expand the crisis in the oil-rich Middle East region.
The OPEC+ bloc is scheduled to meet on November 26 to determine the next oil policy.
Gold prices began the new week’s trading on Monday with a decline, with an increase in the attractiveness of high-risk investment assets, despite the continued uncertainty surrounding the war between Israel and the Palestinians in the Gaza Strip.
Bloomberg News Agency reported that the yellow metal declined last Friday at the end of the previous week’s trading, with the improvement in the performance of US Treasury bonds when the number of new jobs in the United States during the past month rose above expectations, which strengthened expectations that the cycle of increasing interest rates in the United States would stop.
Bloomberg indicated that despite the decline in the price of gold this morning, it is still 8% higher than its level before the start of the aggression on Gaza on October 7 last year. In light of crises and fears, investors resort to buying gold as a safe haven.
The price of spot gold contracts fell today by 0.4% to $1,984.11 per ounce by 6:07 am today, London time. Silver and platinum prices also fell, while the price of palladium rose.