Crude oil slightly higher around $86

Crude oil prices were fluctuating due to geopolitical tensions, with WTI offers ranging between $86.00 a barrel and $86.50. Saudi Arabia and Russia are cutting 1.3m barrels per day (bpd) of production and reducing exports, pushing crude oil prices higher.

OPEC member countries are also cutting back on oil production, threatening global demand. China’s demand for fossil fuels is slowing due to its domestic economy slowing more than expected. As geopolitical tensions escalate between Israel and the rest of the world, crude oil prices are likely to remain capped due to the lack of immediate negative impact.

WTI is fluctuating near $86.3 per barrel, up 0.81%, due to inconsistent outcomes in energy markets. The US has eased export restrictions on Iran, and there is no proof that Iran was directly involved in the Middle East conflict.

A preliminary agreement between the US and Venezuela would allow Venezuela to resume oil exports in exchange for Venezuela’s participation in a presidential election next year.