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Brent crude rose above $100 per barrel on Wednesday after Saudi Arabia indicated earlier this week that OPEC might consider cutting production in response to poor liquidity in the oil futures market.
Global crude oil benchmarks were up on Wednesday, with Brent oil futures for October delivery gaining 1.03% to $101.23, the highest since August 3. While US oil (WTI) rose by 1.02% to $ 94.71 per barrel.
Oil rose on Tuesday after Saudi Energy Minister Abdulaziz bin Salman indicated the possibility of production cuts due to poor liquidity in the futures market and concerns about the macro economy.
But OPEC sources later told Reuters that potential production cuts in the OPEC+, OPEC and its allies, would likely coincide with Iran’s return to oil markets depending on the revival of the nuclear deal.
Sources said that OPEC+ production is already below the target by 2.9 million barrels per day, which will complicate any decision on cuts or how to calculate the baseline for production cuts.
US crude stocks fell by about 5.6 million barrels in the week ending August 19, according to market sources, citing figures from the American Petroleum Institute, compared to analysts’ estimates of a decline of 900k barrels according to a Reuters poll.
