Brent crude exceeded $89 for the first time since January

The price of Brent oil rose above $89 per barrel for the first time since the start of the year.

The price of WTI reached new highs in November of last year, surpassing $86.

It is anticipated that there will be a decrease in supplies from Russia in the market.

As US oil reserves dwindle, prices are rising.

Black Gold predicts that oil prices of $100 per barrel are imminent.

On Monday evening, Brent oil futures surged above $89 for the first time since January 23, 2023, due to expectations that Russia will announce a decrease in supplies this week.

Alexander Novak, Russian Deputy Prime Minister, announced last week that Russia had come to an agreement with other OPEC+ members to reduce oil supplies to the global market. RBC reported that the specifics of the deal may be revealed this week.

An additional 300,000 b/d of oil exports will be cut by Russia in September, in addition to the 500,000 b/d that was previously declared this year. Additionally, Saudi Arabia is likely to continue its voluntary reduction of 1 million b/d into October.

Analysts are predicting that Saudi Arabia will extend the voluntary production cut of 1 million barrels per day for the fourth consecutive month, which is providing support to oil prices. This is according to Reuters, who also notes that the extension would be in place until October if it is approved.

Black Gold anticipates that oil prices will continue to rise due to China's travel boom and OPEC+ supply restrictions. The fourth quarter is expected to bring an increase in demand for jet fuel and gasoline, which will consequently lead to an increase in demand for oil.

FxPro's analyst team reported that U.S. commercial oil inventories had dropped by a staggering 10.6 million barrels in the past week, and had decreased by a total of 34 million barrels over the course of the last five weeks.

Cushing has seen a particularly sharp decrease in its inventory levels due to the trading of oil futures contracts on the NYMEX.

FxPro notes that a "golden cross" formed on the daily chart in August, which has had a major influence on market sentiment.