The country has cut its production volume and thus reduced supply on world markets.
(Photo: dpa)
Singapore Oil prices are approaching $100. On Tuesday morning, a barrel (159 liters) of North Sea Brent for delivery in November cost up to $95.15. A barrel of US WTI for October delivery traded at up to $92.55.
These were the highest levels since November. Brent rose by around half a dollar compared to the previous day. WTI was almost a dollar more expensive.
Prices have been going up since the beginning of July. Since then they have increased by a good 35 percent. The main reason is the tight supply from large producing countries such as Saudi Arabia and Russia. In addition, US oil production is expected to fall to 9.393 million barrels per day (bpd) in October, according to the US Energy Agency (EIA).
On the demand side, the economic situation in China has at least improved somewhat, while the recession in the USA that many experts expected has not materialized. So a tight supply meets robust demand.