Oil Price Soars As Saudi Production Announces Cut

Crude Oil Prices

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.


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