Global Oil Prices Rise on Saudi Arabia’s Production Cuts: US and European Stock Markets Fall

Global oil prices rose on Monday following Saudi Arabia’s announcement of production cuts. Share prices in the US and European stock markets fell, while Asian stock markets mostly rose.

The alliance of oil producing countries OPEC+, at a meeting in Vienna on Sunday, agreed to reduce the oil production target by another 1.4 million barrels per day in 2024 in order to prevent a drop in oil prices.

On the other hand, Saudi Arabia announced that in July this year it will reduce production by one million barrels per day, and if necessary, this reduction in production can be extended. As a result, Saudi Arabia will produce nine million barrels of oil per day in July.

Tokyo’s stock index rose 2.2 percent to a three-decade high, and other Asian bourses were also mostly up.

On the other hand, the European stock indices fell, and the main US stock indices also fell after the peaks reached last week.

Stock prices rose on Wall Street last week thanks to the agreement on the temporary lifting of the US national debt ceiling, as well as Friday’s US employment data. However, the U.S. services sector activity index for May, released on Monday, showed the slowest growth since December.

The Dow Jones Industrial Average fell 0.6% to 33,562.86 on Monday, the Standard & Poor’s 500 fell 0.2% to 4,273.79, and the Nasdaq Composite fell 0.1% to 13,229.43 points.

London’s FTSE 100 fell 0.1% to 7,599.99 on Monday, Frankfurt’s DAX fell 0.5% to 15,963.89 and Paris’ CAC 40 fell 1.0% to 7,200. 91 points.

WTI crude oil rose 0.6% to $72.15 a barrel in electronic trading on the New York Stock Exchange on Monday. “Brent” crude oil price on the London Stock Exchange rose by 0.8% to 76.71 dollars per barrel.

On the Dutch exchange “Title Transfer Facility” (TTF) natural gas price increased by 20.22% to 28.48 euros per megawatt hour on Monday.

The euro rose against the US dollar on Monday from $1.0708 to $1.0714 per euro, the British pound against the US dollar fell from $1.2453 to $1.2431 per pound and the US dollar against the Japanese yen fell from 139.92 to 139.54 yen per dollar. The euro rose against the British pound from 85.98 to 86.15 pence per euro.