Brent oil price dropped below $88 per barrel

The price of Brent oil has dropped below $88 per barrel, according to trading data on the London ICE exchange.

As of 18:18 Moscow time, the price of December Brent futures dropped to $87.86/barrel. (-3.37%), which became the minimum after September 1. At the same time, the price of WTI oil for delivery in November fell by 3.35% to $86.24/barrel.

On September 5, Deputy Prime Minister Alexander Novak announced that Russia would extend the voluntary reduction in oil production by 300,000 barrels per day until the end of December 2023. On the same day, Saudi Arabia announced the extension of the voluntary reduction in oil production by 1 million barrels per day for another three months – until the end of December 2023. The measure is in addition to Russia’s previously announced voluntary reduction in oil production by 500,000 barrels per day, which will be in effect until the end of 2024.

On October 2, the Ministry of Finance reported that the average price of Russian Urals oil in September was $83.08 per barrel, which is 21.7% more than in the same period last year. In January–September, the figure, on the contrary, decreased in annual terms by 26.1% to $80.58 per barrel. The price of North Sea Dated oil (similar to Brent) in September was $93.98.