Both Riyadh and Moscow have been working to support crude prices. However, investors are optimistic for the second half of the year.
The price of Petroleum experienced an increase on Monday, July 3, driven by the announcements of supply cuts made by the main exporters, Saudi Arabia and Russia. These measures succeeded in eclipsing the concerns related to the global economic slowdown and the possibility of an increase in rates of interest in the US.
Saudi Arabia reported Monday that it will extend its voluntary cut of one million barrels per day (bpd). throughout the month of August, as reported by the state news agency. For his part, the Russian Deputy Prime Minister, alexander novakannounced that his country will reduce its oil exports in 500,000 barrels per day during that same monthwhich will contribute to a greater scarcity in world supply. In that sense, the WTI variety barrel rises 0.4% to US$70.94 per barrel. while the guy Brent It did so at 0.4% 0.6% up to US$75.86.
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Both Riyadh and Moscow have been working to support crude prices.. The Brent price has declined from $113 a barrel last year on concerns about the economic slowdown and oversupply from major producers.
“Both the investors as the start of the second half of the year are optimistic. there is the expectation that the balance in the oil market becomes tighter and the buoyancy in stock markets also suggests that a recession will be avoided, albeit possibly by a narrow margin,” said Tamas Varga, an analyst at PVM.
Oil: a slight fall at the beginning of the day
oil prices fell at the start of the session as manufacturing activity in the euro zone it contracted more rapidly than initially expected in June, due to the continued restrictive policies of the European Central Bank, which generated financial pressures.
The fear of a further economic slowdown that will affect the demand for fuel it intensified last fridaywhen inflation in the US continued to exceed the target of the 2% set by the central bankwhich raised expectations of a new increase in interest rates.
Source: Ambito
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