Oil prices remained higher on Monday amid forecasts of widespread supply shortages. This comes as Saudi Arabia and Russia continue to cut production and hope for a recovery in demand in China, which is the world's largest importer of crude oil.
Brent futures rose 39 cents, or 0.4%, to $94.32 a barrel. US West Texas Intermediate (WTI) crude oil futures are at $91. 30 per barrel and up 53 cents or 0.6%.
Referring to CMC Markets analyst, Tina Teng said that among the factors influencing the increase in oil prices include China's stimulus policy, strong US economic data, and OPEC+'s ongoing production cuts.
This week, traders will watch for central bank decisions and comments on interest rate policy, as well as key economic data from China.
Brent and WTI have risen to their highest levels since November and are on track for their biggest quarterly gains since Russia invaded Ukraine in the first quarter of 2022.
ANZ analysts said in a note, Saudi Arabia and Russia's production cut agenda could lead to a deficit of 2 million barrels of oil per day in the fourth quarter. From this stock drop, will expose the market to further price increases in 2024.
Supply cuts until the end of the year were extended by Saudi Arabia and Russia as part of the OPEC+ plan and due to the strengthening of export margins, Chinese refineries increased their production.
"It seems that the price will continue to be above the level of $90 per barrel, following the demand outlook from the world's two largest economies," said Edward Moya, an analyst at OANDA.
In the meantime, ANZ analysts said, in line with the forecasts of the International Energy Agency and the Organization of the Petroleum Exporting Countries (OPEC), global oil demand growth is expected to reach 2.1 million barrels per day.
