Oil market rebounded over 2% on tight supply outlook
Saudi Arabia said the country will extend its voluntary output cut of 1 million barrels per day (bpd) for a third month to include September while keeping the possibility of extending it a feasible option.
International benchmarks for crude oil surged more than 2% on Thursday, 3 August 2023 after Russian and Saudi Arabia announced plans to put a cap on their countries’ outputs in September, which exacerbated concerns over the supply tightness.
Saudi Arabia said the country will extend its voluntary output cut of 1 million barrels per day (bpd) for a third month to include September while keeping the possibility of extending it a feasible option. Meanwhile, Russia would shrink oil exports by 300,000 in September.
Investors now shift their attention to a meeting by OPEC+ ministers on Friday to gauge the market but expect the production cuts to persist.
Brent crude settled the session at $1.94 or 2.3% higher at $85.14/barrel.
US West Texas Intermediate climbed $2.06 or 2.6% to conclude at $81.55/barrel.