Saudi Arabiathe world’s largest oil producer, announced Monday that will extend until August the cut in crude production of 1 million barrels per day that it announced in June. The Asian country is seeking to boost what officials see as “stubbornly weak” oil prices.
This announcement was also joined by Russia, whose deputy prime minister, Alexander Novak, said Moscow would cut supplies by 500,000 barrels in August. The cuts amount to 1.5% of global supply and bring the total promised by OPEC+ to 5.16 million bpd.
Along these lines, Algeria also reported that it would reduce oil production by an additional 20,000 barrels from August 1 to 31 to support the efforts of Saudi Arabia and Russia to balance and stabilize the oil markets, according to its Ministry of Energy. This reduction will be added to a reduction of 48,000 barrels decided in April, he commented.
It should be noted that OPEC+, which pumps around 40% of world crude, has already implemented cuts of 3.66 million bpd, which is equivalent to 3.6% of world demand, including the 2 million bpd agreed last year. and the voluntary cuts of 1.66 million bpd agreed in April and extended to December 2024.
Following the announcements, Brent crude futures rose 0.6% (43 cents) to $75.84 a barrel at 11:52 am EDT (1652 GMT). While US West Texas Intermediate crude rose 0.6% (39 cents) to US$71.03. During the session on Friday, Brent rose 0.8%; and the WTI, 1.1%.
With information from Reuters.
Source: Larepublica
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