UAE Energy Minister Suhail al-Mazrouei told reporters on Wednesday that the additional oil production and export cuts announced by Saudi Arabia and Russia earlier this week “will be sufficient to help balance the market.”
“We will not participate in any additional reduction now,” he added.
And Saudi Arabia, the largest exporter of crude in the world, said on Monday that it would extend the voluntary production cut of one million barrels per day until August.
Russia and Algeria also volunteered to reduce their production and export levels in August by 500,000 barrels per day and 20,000 barrels per day, respectively.
However, investors are still concerned about demand for oil after business surveys showed a slowdown in global factory activity due to slowing demand in China and Europe.
Oil prices fell on Wednesday, erasing the gains of the previous session, amid fears of a global economic slowdown curbing fuel demand, which overshadowed the impact of the oil prices.
“Oil prices have come under pressure again due to continued concerns about a global economic slowdown and rising interest rates in the United States and Europe,” said Tomomichi Akuta, chief economist at Mitsubishi UFJ Research and Consulting.
“We expect the market to continue to move in both directions for some time, focusing on economic indicators in China and monetary policy of central banks,” he said, expecting Brent crude to trade around $75 a barrel.
Further supply curtailment occurred due to production cuts announced by Saudi Arabia and Russia for the month of August.
2023-07-05 08:16:06
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