Brent oil rises to $86.4 per barrel after sharp drop in prices

Oil prices rose on Tuesday after falling to their lowest levels since late August at the end of the previous session, Report informs via Interfax.

The price of December futures for Brent oil on the London ICE Futures exchange amounted to $86.37 per barrel, which is $0.56 (0.65%) higher than at the close of the previous session.

WTI oil futures for November in electronic trading on the New York Mercantile Exchange (NYMEX) rose in price by $0.47 (0.56%) by this time to $84.69 per barrel.

Following the meeting held on Wednesday, the ministers of the OPEC+ Joint Ministerial Monitoring Committee (JMMC) confirmed their commitment to previously made decisions. The committee said it will continue to closely evaluate market conditions, noting OPEC+ countries' readiness to respond to market changes and take additional measures at any time.

Before the meeting, Saudi Arabia said it was maintaining its plan to voluntarily cut oil production until the end of 2023, but could revise its parameters in November. Russia, in turn, stated that it remains committed to a voluntary reduction in oil supplies to world markets by 300,000 bpd until the end of this year, and in November it intends to evaluate the possibility of increasing or reducing its production.

A US Energy Department report released on Wednesday showed a decline in the country's oil inventories last week and a sharp jump in gasoline reserves.

Commercial oil reserves in the United States decreased by 2.22 million barrels, while the consensus forecast of analysts surveyed by S&P Global Commodity Insights included a decrease of 1.4 million barrels. Gasoline inventories jumped by 6.48 million barrels, while experts expected them to remain at the same level.

“Gasoline inventories have risen sharply despite the peak refinery maintenance season, suggesting weak demand,” Kpler analyst Matt Smith said, as quoted by Market Watch.