September 4, WTI crude oil slightly down 0.08%, currently trading at 85.4950 USD / barrel。

On Friday, WTI crude oil continued its wild pattern: it surged nearly 3% on the day, rising for four consecutive trading days, continuing its longest rally since January this year and closing at its highest settlement price since November last year.。For the week, WTI crude surged 7.05%, hitting its biggest weekly gain since March and standing firm above $85 a barrel。

On September 1, according to Russian Deputy Prime Minister Alexander Novak (Alexander Novak), Russia has reached an agreement with OPEC + to further reduce crude oil exports, and announced the main parameters this week.。Earlier, Russia had pledged to limit its crude exports to 500,000 barrels a day in August and then reduce the limit to 300,000 barrels a day in September.。Last Wednesday, according to media reports, Russia was discussing extending September's export cuts to October, which is undoubtedly a positive for the oil market.。

There were also moves from Saudi Arabia following the announcement, with markets expecting the country to follow Russia's lead by extending a one-million-barrel-a-day oil supply cut by a month to October to stabilize oil prices.。It follows news that the rise in oil prices this summer has gradually stalled as China's economic growth has gradually slowed.。A pullback in oil prices would pose a risk to Saudi Arabia, whose foreign exchange reserves have fallen to their lowest level since 2009.。

Beginning in April this year, as one of the important players of OPEC +, Saudi Arabia began to urge OPEC + to start the process of production cuts as soon as possible, thereby boosting depressed oil prices.。However, the oil price gains began to fade as Russian supplies remained volatile and concerns about China's economic growth。

After a sluggish first half, oil prices finally got a boost heading into the third quarter。Data show that crude inventories in the United States are gradually falling, and the reduction in supply in the oil market bodes well for the market to rebalance at higher prices。Separately, the U.S. labor market is finally on a cooling trend, and while inflation remains high, markets have begun to bet that the Fed may be close to completing its rate hike program。

In addition, China's recent announcement of a series of measures to benefit the economy also demonstrates its determination to boost the economy。

For countries announced plans to cut production, in the recent APPEC meeting, the market heavyweights have expressed their views。Ben Luckock, co-head of oil trading at Tok Group, said OPEC + production cuts had successfully pushed up oil prices, with Saudi Arabia outperforming its market targets.。Separately, Victor Group CEO Russell Hardy also said at the meeting that OPEC + production cuts had been successful.。

CIBC Private Wealth senior energy trader Rebecca Babin believes: "$85 is a huge psychological price point.。To break through and sustain, we need to confirm the Saudi-Russian extension of the production cut and believe that the Chinese stimulus is starting to work and improve market sentiment.。I think we will break $85 and keep it, but probably test it first and fail a few times。"