Oil prices for select global crudes are moving upward, with $100/bbl in close sight, according to data from General Index, a tech-native benchmark provider. Analysts say the upward trend is driven by OPEC+’s decision to extend production cuts.

“Oil prices have reached new highs since the extension of the voluntary production cuts (1 MMbbl/d) by Saudi Arabia until December 2023,” Rystad Energy senior oil market data analyst Sofia Guidi Di Sante wrote Sept. 22 in a social media post.

“Prices will remain sustained until year end, although it is unlikely they will stabilize at $100/bbl,” she said.

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(Source: General Index)

The rise in commodity prices has been driven by the extension of the supply cuts from OPEC+, as well as temporary export disruptions in Libya due to recent flooding, Stratas Advisors John E. Paise said Sept. 18 in column for Hart Energy. Prices have also been impacted by “some increased optimism about China’s economic growth and oil demand,” he said.

“For the upcoming week, however, we are expecting that oil prices will trend upwards with traders adding to their net long positions,” Paise said. “The price of Brent is already at the highest level of the year and the next resistance level is around $95/bbl.”

Worries about supply due to weather events also helped to support the oil market, OPEC said Sept. 12 in its Monthly Oil Market Report. “Hurricane Idalia and a temporary shutdown of the Novorossiysk port, one of the largest ports in the Black Sea, contributed to the bullish sentiment.”