Saudi Arabia will limit oil production for another month. Oil prices have been rising for months as oil-producing countries cut production. And we notice that at the pump.
Saudi Arabia already voluntarily cut production by one million barrels per day in July and August. Now the country will do the same in September. The daily oil production of the country is therefore around nine million barrels (of 159 liters).
Russia also announced to cut oil exports by 300,000 barrels per day in September. Saudi Arabia and Russia are part of the OPEC+ oil cartel. Other OPEC+ countries are also pumping less oil.
Due to the oil cartel’s production cuts, the supply on the oil market is shrinking. At the same time, there is more optimism about the global economy, which means that the demand for oil can increase faster. As a result, oil prices have now risen to their highest level since April.
The price for a barrel of Brent oil, the benchmark for oil from Europe and the Middle East, has risen to more than 84 dollars (more than 76 euros). At the end of June it was still 74 dollars.
Rising oil prices are noticeable at the pump. Recommended prices for a liter of Euro 95 petrol have now reached EUR 2.22. That is about 10 cents more than at the beginning of July. The liter price was much lower in June, but that was because we paid less excise duty then.
2023-08-03 17:12:04
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