Following Saudi Arabia’s declaration that it will reduce its oil output by one million barrels per day in July, oil prices increased on Monday. On Monday morning, the cost of a barrel (159 liters) of North Sea Brent for delivery in August was 77.03 dollars, an increase of 90 cents over the previous day.
For delivery in July, the cost of a barrel of U.S. West Texas Intermediate increased by 92 cents to $72.66. At points throughout the previous night, prices had increased even more sharply.
during hours of talks, Saudi Arabia announced the decrease during a Sunday meeting of the oil cartel OPEC+. The move comes as oil prices are falling as a result of a weaker dollar, which Riyadh claimed might be prolonged beyond July.
Apart from a brief increase in April, the oil price has been falling for about a year: In mid-2022, a barrel of OPEC oil cost around 115 dollars. As early as October 2022, the alliance with a global market share of about 40 per cent decided to cut production by two million barrels a day.
In contrast to Saudi Arabia and other OPEC countries, however, the United Arab Emirates could raise its production to some extent in the coming year.