Saudi Arabia is the world’s largest exporter of crude oil and a major seller of petroleum products.
The price of oil jumped more than $1 per barrel. This comes after Saudi Arabia announced its intention to cut oil production by another 1 million barrels a day from July, “contrary to the macroeconomic turmoil overwhelming the markets.” About this on Monday, July 5, Reuters wrote.
Specifically, Saudi Arabia’s energy ministry said the country’s output would fall to 9 million barrels per day (b/d) in July from around 10 million b/d in May, the kingdom’s biggest decline in recent years. year.
The market reacted to the statement by SA representatives on the increase in oil prices.
At 0014 GMT, Brent futures were trading at $77.64 a barrel, up $1.51 or 2% from a session high of $78.73 a barrel.
US West Texas Intermediate rose $1.41, or 2%, to $73.15 a barrel after hitting an intraday high of $75.06 a barrel.
The voluntary cuts announced by Saudi Arabia are in addition to a broader agreement by the Organization of the Petroleum Exporting Countries (OPEC+) and its allies, including Russia, to limit supplies until 2024 as the group seeks to boost falling oil prices.
Recall that in April Russia increased oil exports to the maximum since the beginning of the war against Ukraine. Also, the aggressor country did not comply with the announced reduction of supplies by 500,000 barrels per day.
At the same time, Russia estimated a decline in oil and gas revenues for the month.
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Source: korrespondent
I’m Liza Grey, an experienced news writer and author at the Buna Times. I specialize in writing about economic issues, with a focus on uncovering stories that have a positive impact on society. With over seven years of experience in the news industry, I am highly knowledgeable about current events and the ways in which they affect our daily lives.