Oil is rising amid tight supplies

Brent crude, the global benchmark, hovered above $87 a barrel, as crude prices were set to end a two-week losing streak on Friday, supported by expectations of supply shortages.

Saudi Arabia is widely expected to extend a voluntary oil production cut of 1 million barrels per day into October, prolonging supply curbs announced by the Organization of the Petroleum Exporting Countries (OPEC) and its allies in the bloc known as OPEC+ to support prices.

Russian Deputy Prime Minister Alexander Novak said on Thursday that his country, the world’s second largest oil exporter, has already agreed with its OPEC+ partners to cut oil exports.

The price of Brent crude rose about 3 percent this week, while the price of US West Texas Intermediate crude rose 5 percent.

And by 1020 GMT, Brent rose 98 cents, or about 1.1 percent, to $ 87.81 a barrel, while US West Texas Intermediate crude increased 95 cents, or also 1.1 percent, to $ 84.58 a barrel.

“We continue to expect the cuts to be extended, as prices above $90 per barrel (on a sustainable basis) are needed to attract OPEC supplies back to the market, as well as to incentivize US shale producers to increase exploration activity,” National Australia Bank said in a note to clients on Friday. .