According to a recent assessment conducted on Thursday, September 28 at 5:00 AM (GMT+1), the price of Brent crude oil has surged to $97.24 per barrel, marking its highest point since November 2022.
The substantial price increase was driven by an upswing in demand and a noticeable reduction in the crude oil supply.
Checks revealed the surge in prices can be attributed to the oil production cuts announced by Saudi Arabia and Russia, which were scheduled to continue until the end of 2023 with monthly reviews.
Market analysts anticipate that the upcoming meeting of the Organization of Petroleum Exporting Countries (OPEC) on October 4 will involve a thorough evaluation of market dynamics and a potential reconsideration of supply levels and prices by the producers.
Stefano Grasso, a senior portfolio manager at 8VantEdge in Singapore, highlighted the impact of the OPEC+ cuts on crude availability.
“Stocks are drawing while demand keeps growing. We are still far away from a price level causing demand destruction.”
While there were high expectations of crude oil prices surging to and potentially surpassing the $100 per barrel mark, it was uncertain whether or not the current surge will be sustained over an extended period.
Analysts suggested that a prolonged period with oil prices above $100 could have severe implications, particularly for developing nations.