Oil prices during the Asian period trading on Monday climbed to their highest levels since mid-April, following an attack on a major Russian oil export hub and a stretch of production cuts by Saudi Arabia and Russia.
Over the weekend, Ukraine launched a naval drone attack on Russia's Novorossiysk port, an important Black Sea hub for Russian oil exports.
Saudi Arabia, the world's top oil exporter last Thursday also extended its voluntary reduction of crude oil production by 1 million barrels per day until the end of September. The Saudi Press Agency said the 1 million barrels per day cut was implemented in July through August and the cut could be extended or extended and deepened.
Russia, the world's second-largest oil exporter last Thursday also pledged to voluntarily cut oil exports by 300 thousand million barrels per day in September.
Now that we've seen supplies cut, I think we'll see much higher prices," said Josh Young, chief investment officer at oil and gas investment firm Bison Interest.
He also said "I think they will be very volatile, adding that prices will be much higher over the next five years.
Morse, the bank's global head of commodity research, also says Saudi Arabia and Russia's production is "likely to return" in October, and that oil prices will hit at most $90 a barrel during the quarter, although we don't see growth for global demand especially Chinese demand.
Follow us on the free TV channel from here.
