Oil prices rose today after the world’s biggest oil exporters, Saudi Arabia and Russia announced supply cuts for August, despite concerns over a global economic slowdown and possible further interest rate hikes from the US Federal Reserve.
In intra-day trade, Brent crude was trading at 76 dollars and 4 cents a barrel. West Texas Intermediate crude price was at 71 dollars and 30 cents per barrel when reports last came in.
Saudi Arabia said it would extend its voluntary oil output cut of one million barrels per day (bpd) for another month to include August, adding that the cut could be extended beyond that month.
Russian Deputy Prime Minister Alexander Novak said, Moscow will reduce its crude export flows by five lakh bpd next month, in an effort to keep the global market balanced.
The cuts amount to 1.5 percent of global supply and bring the total pledged by the group, OPEC(plus) to 5.16 million bpd.
OPEC(plus) already has in place cuts of 3.66 million bpd, amounting to 3.6 percent of global demand, including 2 million bpd agreed last year and voluntary cuts of 1.66 million bpd agreed in April and extended to December 2024.
OPEC(plus), which groups the Organisation of the Petroleum Exporting Countries (OPEC) and allies led by Russia, pumps around 40 percent of the world’s crude.