Crude Oil Hits $97 Per Barrel, Highest So Far In 2023

Brent Crude oil rose to $97.2 per barrel in the early hours of Thursday, September 28, reaching its highest level since November 2022, according to Oilprice.

The huge price increase was caused by increased demand and a major drop in crude oil supplies.

Saudi Arabia and Russia were key contributors to this surge, since they announced oil production cuts that would endure through the end of 2023, with monthly reviews to assess the situation.

The benchmark surpassed $90 per barrel threshold in the first week of September for the first time in ten months, thanks to Riyadh and Moscow’s voluntary reduction.

Market analysts anticipate a detailed study of market dynamics and a potential rethinking of supply levels and prices by producers when the Organization of Petroleum Exporting Countries (OPEC) meets on October 4.

Goldman Sachs upped its 12-month projection for Brent Crude oil prices to $100 per barrel last week, up from $93 before, on greater inventory drawdown from extended OPEC+ cutbacks and global demand growth.

“We have raised our 12-month Brent forecast from $93 to $100 per barrel as we now expect modestly sharper inventory draws,” Goldman Sachs analysts said in a note reviewed by Reuters on Wednesday.