Oil rises after OPEC+ decision, US inventory data; Brent crosses $93

Oil drilling rigs

Oil prices settled higher today, Oct. 5, after the OPEC+ decision to reduce crude production and following the release of US inventory data.

The Organization of the Petroleum Exporting Countries and its allies (OPEC+) decided to implement the largest reduction in oil supplies since 2020, as it agreed to reduce supplies by about two million barrels per day, starting from November.

OPEC+ decision sparked criticism from the White House, as US President Joe Biden considered it not necessary.

Russian Deputy Prime Minister Alexander Novak warned of the possibility of a temporary reduction in oil production in the event of setting a ceiling for the price of Russian crude, reiterating his threats not to export oil to any country that agrees to set a price ceiling.

On the other hand, the data of the US Energy Information Administration revealed that crude oil inventories decreased by 1.4 million barrels in the week ended Sept. 30, which was contrary to expectations of a rise in inventories by 1.7 million barrels.

Brent crude rose by 1.7%, or $1.57, to settle at $93.37 a barrel. WTI crude gained 1.4%, or $1.24, to reach $87.76 a barrel.