Oil Prices Surge as Saudi Arabia and Russia Implement Supply Limitations

2023-07-03 13:00:00
London: Oil prices started their fourth consecutive session on Monday as two of the world’s three largest producers, Russia and Saudi Arabia, announced new limits to their supply. Around 10:50 GMT (12:50 CET), the barrel of Brent BRENT Brent or North Sea crude is a variation of crude oil serving as a benchmark in Europe, listed on the InterContinentalExchange (ICE), a stock exchange specializing in energy trading. It has become the first international standard for setting oil prices. of the North Sea, for delivery in September, of which it is the first day of use as a reference contract, took 0.80% to 76.01 dollars.

Its American equivalent, the barrel of West Texas Intermediate (WTI WTI West Texas Intermediate (WTI), also known as Texas Light Sweet, is a variation of crude oil that serves as a standard in pricing crude oil and as a commodity for oil futures contracts with the Nymex (New York Mercantile Exchange). ), the stock exchange specializing in energy.) for August delivery, gained 0.88% to $71.26.

Saudi Arabia has announced that it will extend its voluntary production cut of one million barrels per day in August, and that its efforts might still be extended over time, according to the Ministry of Energy quoted by the agency. official press of the kingdom.

“The source confirmed that this additional voluntary reduction reinforces the precautionary measures taken by the OPEC+ countries with the aim of supporting the stability and balance of the oil markets”, added the press agency.

And Moscow intends for its part to reduce its exports by 500,000 barrels per day, assured Deputy Prime Minister Alexander Novak, quoted by Russian press agencies.

“It’s important for oil prices because the door is open for more declines in the coming months,” Bjarne Schieldrop, an analyst at SEB, told AFP.

Yet the oil price reaction remained relatively muted, and cuts in recent months to the production targets of the Organization of the Petroleum Exporting Countries and its allies (OPEC+), led by Russia and Saudi Arabia, have not were not enough to restore prices.

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In the first semester, the Brent BRENT Brent or North Sea crude is a variation of crude oil serving as a benchmark in Europe, listed on the InterContinentalExchange (ICE), a stock exchange specializing in energy trading. It has become the first international standard for setting oil prices. and the WTI WTI West Texas Intermediate (WTI), also known as Texas Light Sweet, is a variation of crude oil that serves as a standard in pricing crude oil and as a commodity for oil futures contracts with the Nymex (New York Mercantile Exchange). ), the stock exchange specializing in energy. fell around 12%, weighed down by Chinese demand which is struggling to recover following the long confinements due to Covid-19 and by fears of a recession in the United States.

“Global growth concerns are dominating the market” and preventing black gold prices from taking off, say ANZ analysts.

But according to them, “OPEC+ production cuts are not yet fully felt” and when they are, prices should take off.

(c) AFP

Oil is rising, Saudi Arabia and Russia are limiting their supply

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