Oil prices continue to rise

The decision of the Organization of the Petroleum Exporting Countries (OPEC) to once again increase oil supplies to world markets by 500 thousand barrels per day does not seem to have had the expected effect. The price of the December oil contract in the electronic trading system of the New York Mercantile Exchange changed slightly on Tuesday. The price of a barrel of oil rose by 9 cents to $32.90 per barrel, Bloomberg reports.

Yesterday there was concern among traders that the positive effect of raising quotas could be negated by the fact that starting on Wednesday, Iraq demanded that the UN, which controls the country's oil supplies, pay for oil in euros, and not in dollars, as it is it was before. Oil market players feared that the UN would not be able to carry out the necessary recalculations on time, which would lead to a disruption in the supply of 2.4 million barrels of oil per day from Iraq as early as November.

However, today the UN sanctions committee decided to satisfy Iraq's ultimatum and convert this country's petrodollars into euros. Perhaps this decision will calm the market a little and help lower oil prices.

However, the situation with Iraq is not the only source of turmoil reigning in the oil market. In addition to the conflict in the Middle East, oil analysts note an unprecedentedly high demand for oil amid the approaching heating season and low fuel oil reserves in the northern hemisphere.