Prices of the oil rise more than a dollar a barrel this Monday, June 5, after the main exporter of crude oil in the world, Saudi Arabiapromised to cut production in 1 million barrels per day (bpd) more from next July to offset the factors adverse macroeconomic that are depressing the markets.
In this sense, futures Brent crude rises 2.3% until the US$ 77.9 per barrel; while US crude West Texas Intermediate (WTI) climbs 2.6% and trades above US$ 73, after touching an intraday maximum of US$ 75.06 according to the slogan Reuters.
Both contracts extended their gains of more than 2% on Fridayafter the Riyadh Ministry of Energy confirmed that the kingdom’s production would fall to 9 million bpd from 10 million bpd in May for next July. cutout set Saudi Arabia’s largest reduction in years.
Likewise, the voluntary cut adds to a broader agreement of the Organization of Petroleum Exporting Countries (OPEC) and its allies, which includes Russiato limit the supply until 2024, in an attempt by the OPEC+ producer group for driving low oil prices.
It should be remembered that OPEC+ pumps around 40% of world crude and cut its production target by a total of 3.66 million bpdwhich is equivalent to 3.6% of world demand.
Nicolás Maduro arrives in Saudi Arabia
The President of Venezuela, Nicolas Maduroarrived in Saudi Arabia on Monday, June 5, state media reported, as the kingdom continues to expand its diplomatic reach.or beyond traditional Western alliances.
Maduro was received at the airport of the Saudi city of Jeddah, on the Red Sea, by the deputy governor of the Mecca region, Prince Badr bin Sultanand other officials, the Saudi state news agency said SPA.
The Venezuelan president he is the latest critic of the United States to visit Riyadh as the kingdom rebuilds alliances without the blessing of the White House, a longtime ally. It should be remembered that Saudi Arabia restored relations with Iran and Syria in recent months and strengthened their cooperation with China and Russia.
the saudi half did not give a reason for Maduro’s visitbut the South American OPEC member nation has in the past sought coordination with Saudi Arabia over the drop in oil prices and US sanctions.
Maduro’s visit comes one day before the head of US diplomacy, Anthony Blinkenarrive in Saudi Arabia for talks with local leaders.
Since taking office, US President Joe Biden has relaxed some sanctions on Venezuela, many of them imposed by his predecessor Donald Trump in a “maximum pressure” campaign, to encourage dialogue. But the negotiations have again stalled. Washington maintains that it will ease sanctions on Caracas only in exchange for concrete steps towards free elections in the country.
Source: Ambito
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