Oil prices gained support from additional supply cuts
Saudi energy minister Prince Abdulaziz bin Salman added that the Russia-Saudi partnership, part of the OPEC+ alliance will do whatever it takes to support the market.
International benchmarks for crude oil rose on Wednesday, 5 July 2023, as Saudi announced on Monday that it will extend its production cuts into August while Russia and Algeria vowed to reduce output and export levels as well, playing into market prices.
Saudi energy minister Prince Abdulaziz bin Salman added that the Russia-Saudi partnership, part of the OPEC+ alliance will do whatever it takes to support the market. Additionally, a UBS analyst said, “The July cuts and further increases planned for August should bridge the oil market narrower, but investors remain cautious until tangible draws in inventories are seen”.
Brent crude went up 40 cents or 0.5% at $76.65/barrel.
US West Texas Intermediate was at $71.79/barrel, up $2 or 2.9% from Monday’s close.
(There was no WTI settlement on Tuesday due to the Independence holiday)