Oil rises due to supply concerns and demand recovery in China

Oil prices rose on Monday, supported by expectations of a widening supply deficit in the fourth quarter of the year after Saudi Arabia and Russia extended production cuts, in addition to optimism about the recovery of demand in China, the largest global importer of crude.

By 0027 GMT, Brent crude oil futures rose five cents, or 0.1 percent, to $93.98 per barrel. West Texas Intermediate crude futures rose 15 cents, or 0.2 percent, to $90.92 a barrel.

The two raw materials rose for the third week in a row, touching their highest levels since November, after Saudi Arabia and Russia extended production cuts until the end of the year within the framework of the OPEC+ group plans, and with Chinese refineries increasing production, supported by strong export margins.

Analysts at ANZ said in a note that the growth in global oil demand is heading towards recording 2.1 million barrels per day, which is consistent with the expectations of the International Energy Agency and the Organization of the Petroleum Exporting Countries (OPEC).

Traders are awaiting monetary policy decisions by central banks, including the Federal Reserve, this week regarding raising interest rates.

Stopping raising US interest rates may lead to a weakening of the dollar, making commodities denominated in the US currency, such as oil, less expensive for holders of other currencies.