Oil stabilized this Monday morning, after three consecutive weeks on the rise, due to the imminent reduction in supply by Saudi Arabia and other producers in the OPEC+which offset fears of weakening global growth, which could curb fuel demand.
Last week, crude oil rose more than 6% after OPEC+, the group that brings together the Organization of Petroleum Exporting Countries (OPEC) and its allies, including Russia, surprise the market with a new round of production cuts starting in May.
At 10:09 GMT, crude Brent rose 18 cents, or 0.2%, to settle at $85.30 a barrel, while the West Texas Intermediate in the United States (WTI) it earned 11 cents, up to 80.81 dollars.
“The bears are questioning the demand outlook in light of the cuts, while the bulls now see an even tighter market in the second half,” said Warren Patterson of ING. “I’m in the latter camp and I think prices will go up as the year progresses.”
The shortage of supply has been compounded by the closure of exports from northern Iraq. An agreement was signed last week to reactivate the flows, but until Thursday they had not resumed.
Oil was also favored by the drop in oil inventories in the United States, which was greater than expected, and by the decline in gasoline and distillate reserves, which point to an increase in demand.
This Thursday the monthly reports of OPEC will be published and on Friday those of the International Energy Agencywhich will update oil supply and demand forecasts.
