Oil up as OPEC+ produces without quotas

Oil prices rose today, Tuesday, as the Organization of the Petroleum Exporting Countries and its allies continued to produce less than their quotas, yet prices are heading to decline for the fourth consecutive month before another expected increase in US interest rates, which may limit economic growth and fuel demand.

According to “Reuters”, Brent crude futures for November delivery rose 41 cents, or 0.5%, to $92.41 a barrel by 0939 GMT.

The price of US West Texas Intermediate crude for October delivery recorded $85.82 a barrel, an increase of nine cents. Trading in the October contract will expire on Tuesday, and the most active contract for November delivery was $85.53, up 17 cents, or 0.2%.

In an indication of the scarcity of basic supplies, a document from the Organization of the Petroleum Exporting Countries and its allies led by Russia showed that the group known as OPEC+ did not reach its oil production goals by a difference of 3.583 million barrels per day in August, which is an estimated 3.5% of global demand for oil.

Meanwhile, the stalemate in talks to revive the Iran nuclear deal continues to prevent Iranian exports from fully returning to the market.

However, Brent and WTI are heading for the worst quarterly percentage decline since the start of the coronavirus pandemic.

The dollar settled close to the highest level in 20 years against other major currencies, which made oil more expensive for holders of other currencies, ahead of the issuance of decisions expected this week by the Federal Reserve and other central banks.

The US Federal Reserve is likely to raise interest rates on Wednesday by another 75 basis points to curb inflation.