Oil prices
Oil prices rose 2 percent in trading, on Tuesday, as the market evaluated the impact of Saudi Arabia and Russia cutting production in August in light of the weak global economic outlook.
Saudi Arabia said on Monday that it would extend voluntary production cuts of one million barrels per day until August, while Russia volunteered to reduce production and export levels in the same month by 500,000 barrels per day, and Algeria by 20,000.
Tamas Varga, an analyst at BVM, said that if these cuts are fully implemented, the amount of production cut will be 5.36 million barrels per day compared to August 2022, and may even exceed that with the inability of several countries in the OPEC + alliance to meet their full production quotas.
The total production cuts currently amount to more than five million barrels per day, or the equivalent of five percent of the total global oil production.
price move
Brent crude futures rose $1.49 to $76.14 a barrel by 1520 GMT. US West Texas Intermediate crude increased $1.41 to $71.20.
“It is clear that the Saudis are taking proactive and precautionary measures to stabilize the price of crude oil, as well as raising the price to $80 a barrel to support their domestic budget,” said Andrew Lipow, president of Lipow Oil Associates.
The two benchmarks closed down about 1 percent in the last session, as the bleak economic outlook led to oil giving up early gains.
2023-07-04 16:29:00
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