The prices of Petroleum go up this Tuesday July 4th as the markets evaluate the supply cut plans announced by the main exporters, Saudi Arabia and Russia, along with the weak economic prospects Worldwide.
In this context, Brent crude futures rise US$1.40 or 1.8%, reaching US$75.98 per barrel, while the West Texas Intermediate in the United States it improved by US$1.30, or a 1.3%, reaching US$71.03 per barrel.
On Monday, Saudi Arabia announced that it would extend its voluntary production cut by 1 million barrels per day (bpd) through August. Besides, Russia and Algeria they also offered to reduce their production and export levels by 500,000 bpd and 20,000 bpd respectively, for the month of August.
Should these measures be fully implemented, a combined reduction of 5 would be achieved..36 million bpd compared to August 2022 levels. However, there is a possibility that this number could be even higher, as several countries in the OPEC+ producer group have failed to meet their production quotas, according to Tamas Varga, an analyst at PVM.
Despite these announcements, benchmark oil indices declined close to 1% the day before, after an initial rise, due to the gloomy macroeconomic outlook.
Oil: June starts with volatility
According to some analysts, this general uncertainty is likely to outweigh OPEC+ efforts to reduce the supply of oil.
Still, crude oil prices did not spike significantly on the news, mainly due to demand concerns, especially in relation to the slow economic recovery in China following the lifting of coronavirus restrictions.
On the eve, the barrel of North Sea Brent for September delivery, on its first day as a benchmark contract, lost 1% to $74.65 in London. while the West Texas Intermediate (WTI) barrel for August lost 1.2% and was below US$70 in New York, US$69.79.
Source: Ambito
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