Global oil prices hit 10-month high

Global oil prices have surged to the highest level in more than 10 months amid predictions of shorter supplies.


Brent crude, a benchmark for prices, breached $95 per barrel on Tuesday.


It came as the International Energy Agency (IEA) said a decision by Saudi Arabia and Russia to cut production could cause a “significant supply shortfall” by the end of this year.


Following Russia’s invasion of Ukraine in February 2022, oil prices soared, hitting more than $120 a barrel in June last year.


They fell back to a little above $70 a barrel in May this year, but have steadily risen since then as producers have tried to restrict output to support the market. Saudi Arabia and Russia, members of the OPEC+ group and two of the world’s largest oil producing nations, decided to reduce production earlier in August.


At the same time, the US Energy Information Administration said on Monday that US oil output from its top shale-producing regions was set to decline in October for the third straight month, reaching its lowest level since May.

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