The price of crude oil had a strong day, rising 5.26% to close at 7,259. The United States tightened its restrictions on Russian crude exports, which led to this remarkable increase. These bans caused supply issues in a competitive market, especially given that fourth-quarter global inventories are predicted to decline.
In order to close gaps in the system designed to punish Moscow for its invasion of Ukraine, the U.S. slapped sanctions on the owners of tankers carrying Russian oil that was priced higher than the G7’s price cap of $60 per barrel. In a separate backdrop, OPEC reaffirmed its projection for rise in global oil consumption, noting indications of a healthy global economy this year and predicting further increases in demand in China.
In the meantime, U.S. crude oil output topped a record 13.2 million barrels per day, exceeding the previous high recorded in 2020 before the pandemic severely impacted oil consumption. This record-breaking level of American production also happens to be in line with Saudi Arabia and Russia increasing their voluntary supply cutbacks above OPEC+ restrictions. The United States produced 13.2 million barrels per day of oil in the week ending October 6, the most since March 2020.
