Oil prices on world markets rose due to announcements of reduced supply and falling inventories in the US, which diverted the focus of investors from signs of a slowdown in the US economy.
According to the latest data published on the website OilPrice.com, the price of Brent oil rose to $85.12 per barrel. Texas WTI crude is trading at $80.70.
Oil prices received a boost this week from the announcement by the Organization of the Petroleum Exporting Countries and its allies (OPEC+), including Russia. OPEC+ will cut production by an additional 1.66 million barrels per day from May until the end of the year to stabilize the market.
The US Department of Energy report also encouraged traders, which showed that oil stocks in the US fell by 3.7 million barrels last week, and stocks of gasoline and other derivatives also decreased, hinting at a strengthening of demand.
The publication of data showing a slowdown in the growth of the American economy stopped the upward trend.
Activity in the service sector slowed significantly in March, and the vacancy index was at its lowest level in nearly two years at the end of February.
The US worries about Saudi Arabia’s decision
Saudi Arabia, together with other members of OPEC, the umbrella organization of oil-exporting countries, announced a reduction in oil supply, which, among others, will harm the US.
The reason for the decrease is the desire to increase oil prices due to the fear of falling demand.
As part of the step announced after the official OPEC meeting, the group will cut production by 1.16 million barrels daily. A drop in production is expected next month and will continue until the end of the year.
This is not the first time Saudi Arabia has reduced the production of barrels per day after announcing a drop to two million barrels per day last November. America then condemned this step.
