Oil prices hit 10-month high on supply concerns
Further to our previous article, oil prices are rising today due to concerns about a potential supply shortage. Saudi Arabia and Russia announced they would continue reducing their oil production until the end of the year.
Brent crude, the global benchmark, reached $94.75 per barrel, marking its third consecutive week of gains. Meanwhile, West Texas Intermediate, the U.S. standard, went up to $91.68 per barrel.
The combined production cuts by Saudi Arabia and Russia could lead to a shortage in the oil market in the coming months, causing crude oil prices to reach their highest levels since November. Additionally, there are signs of economic improvement in China, supported by recent government stimulus measures, which may increase global demand for oil and put further upward pressure on prices.
The Federal Reserve will closely monitor energy prices as it decides on interest rates this week. If fuel costs remain high, it could contribute to inflation, potentially leading policymakers to keep interest rates elevated, which may have an impact on economic growth.
Russell Shor
Senior Market Strategist
Russell Shor is a Senior Market Strategist at FXCM, having been promoted to the role in 2025 in recognition of his depth of insight and consistent delivery of high-impact market analysis. He originally joined FXCM in October 2017 as a Senior Market Specialist.
Russell holds an Honours Degree in Economics from the University of South Africa, is a certified FMVA®, and a full member of the Society of Technical Analysts (UK). With over 20 years of experience in financial markets, his work is renowned for its clarity, precision, and strategic value across asset classes.
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