The tug-of-war between supply and demand continues to baffle oil traders. On one hand, leading OPEC+ members Saudi Arabia and Russia are poised to extend oil supply cuts, with Saudi Arabia likely to roll over its voluntary 1 million barrel per day (bpd) cut into October and Russia set to announce a new OPEC+ deal. Moscow has already slashed exports by 300,000 bpd in September, following a 500,000 bpd cut in August.
These expected cuts typically boost prices, but they’re being counterbalanced by China’s faltering economic recovery, keeping the oil markets in a state of limbo.
Source: FXEmpire
