Oil prices saw an increase on Monday. Brent crude oil futures for December gained 18 cents, equivalent to 0.2%, reaching $92.38 per barrel.
This followed a decrease of 90 cents on the previous Friday when Brent November futures settled at $95.31 per barrel.
This rise in oil prices can be attributed to two key factors: a tight global supply outlook and a last-minute deal that prevented a US government shutdown, which boosted investor risk appetite.
US West Texas Intermediate (WTI) crude futures also experienced an upswing, rising by 23 cents, or 0.3%, to reach $91.02 per barrel, after losing 92 cents in the previous trading session.
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Both Brent and WTI benchmarks had a strong performance in the third quarter, rallying nearly 30%.
This surge in prices was driven by expectations of a significant crude supply deficit in the fourth quarter, due to extended supply cuts by major oil-producing nations like Saudi Arabia and Russia.
The Organization of the Petroleum Exporting Countries (OPEC) and its allies, including Russia, collectively known as OPEC+, are not expected to make any adjustments to their current oil output policy during an upcoming meeting.
Hiroyuki Kikukawa, President of NS Trading, a unit of Nissan Securities, noted, "Oil prices started the week on a strong note amid supply concerns with no policy change by OPEC+ expected. The avoidance of a US government shutdown over the weekend gave some relief. Still, whether or not the market will rise further will depend on future demand trends."
In addition to these factors, concerns about the Chinese economy continue to influence the oil market.