Oil prices sank 1% as global economic data supersedes potential output cuts
Saudi’s plan to reduce production by 1 million bpd in July does not necessarily guarantee a boost in oil prices due to the various factors that could play into the compromised energy demand
International benchmarks for crude oil fell about 1% on Tuesday, 6 June 2023 as concerns over poor global economic growth could reduce demand which in turn overshadows Saudi’s attempts to amplify output cuts.
Saudi’s plan to reduce production by 1 million bpd in July does not necessarily guarantee a boost in oil prices due to the various factors that could play into the compromised energy demand, such as the potential recession in the US and Europe as well as the weakening momentum in the Chinese economy.
Brent crude futures dropped 42 cents or 0.6%, concluding at $76.29/barrel.
West Texas Intermediate fell 41 cents or 0.6%, at $71.74/barrel.