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Oil prices slide as Russia, Saudi Arabia plan supply boost

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Oil prices declined in early trading on Sept. 29 following a recent surge, as profit-taking and the anticipation of increased supply from Russia and Saudi Arabia overshadowed optimistic forecasts of demand, Reuters reported.

Brent November futures, set to expire on Friday, dropped by 21 cents to $95.17 per barrel, while Brent December futures decreased by 10 cents, trading at $93.00 per barrel at 0055 GMT. U.S. West Texas Intermediate crude (WTI) also fell by 8 cents to $91.63 per barrel.

Thursday had seen a 1% easing of oil prices as traders capitalized on recent gains, and concerns emerged regarding the potential impact of high interest rates on oil demand.

Currently, the market remains tight due to the combined 1.3 million barrels per day in cuts by Saudi Arabia and Russia, part of the OPEC+ coalition.

Russia recently relaxed its ban on fuel exports, initially implemented to stabilize the domestic market. Analysts predict that these restrictions will not remain in place for long, as they could negatively affect refinery operations and customer relationships.

JPMorgan reported that destinations such as Turkey, Brazil, Morocco, Tunisia, and Saudi Arabia were key recipients of Russian diesel this year.

FT: Russia avoids G7 price cap on most oil exports
Russia is growing increasingly less reliant on Western services when shipping out its oil, allowing it to more successfully avoid the $60-per-barrel price cap set by the Group of Seven (G7), the Financial Times reported on Sept. 25.

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Olena Goncharova

Head of North America desk

Olena Goncharova is the Head of North America desk at The Kyiv Independent, where she has previously worked as a development manager and Canadian correspondent. She first joined the Kyiv Post, Ukraine's oldest English-language newspaper, as a staff writer in January 2012 and became the newspaper’s Canadian correspondent in June 2018. She is based in Edmonton, Alberta. Olena has a master’s degree in publishing and editing from the Institute of Journalism in Taras Shevchenko National University in Kyiv. Olena was a 2016 Alfred Friendly Press Partners fellow who worked for the Pittsburgh Post-Gazette for six months. The program is administered by the University of Missouri School of Journalism in Columbia.

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