Oil surged 2% on extended supply cuts
Saudi Arabia announced on Monday of extending its supply cut by 1 million barrels per day (bpd) while Russia and Algeria are looking to reduce output and export levels by 500,000 and 20,000 bpd respectively.
International benchmarks for crude oil surged 2% on Tuesday, 4 July 2023 as markets ponder over further supply cuts planned for August by Saudi and Russia against a poor global economic state.
Saudi Arabia announced on Monday of extending its supply cut by 1 million barrels per day (bpd) while Russia and Algeria are looking to reduce output and export levels by 500,000 and 20,000 bpd respectively. If the decision goes through, the total reduction would amount to 5.36 million bpd from August 2022, possibly even higher considering several OPEC+ countries were unable to satisfy their output quota.
Brent crude settled up $1.60 at $76.25/barrel.
US West Texas Intermediate went up $1.44 at $71.23/barrel.
(US markets were closed on Tuesday for the Independence Day celebration).