Crude oil futures surged over 2% on Monday during early trading in Asia after Riyadh announced it will cut oil production by another 1 million barrels per day in July. Saudi Arabia’s oil output is now estimated to average 9 million barrels daily, with Minister Abdulaziz bin Salman claiming that OPEC+ is not aiming to achieve a certain price range. He also hinted that the unilateral slash may extend past July. West Texas Intermediate (WTI) for deliveries in July advanced by 2.69% to sell for $73.67 per barrel at 1:08 am CET. A minute later, Brent for settlements in August went up 2.54% to go for $77.87 per barrel.
Riyadh to slash oil output by another 1M bpd in July
Saudi Ministry of Energy announced on Sunday that Riyadh will be making a unilateral reduction in crude oil volume production, slashing another 1 million barrels per day in July, in addition to extending the voluntary production cut by 500,000 barrels per day until the end of 2024.
According to the statement, Saudi Arabia’s oil production is expected to average 9 million barrels per day, bringing the Kingdom’s voluntary production cuts to 1.5 million barrels per day,
with the aim to “supprot the stability and balance of oil markets.” The newly-announced cut will remain in place only in July, with the possibility of extending it later. The United Arab Emirates Energy Minister Suhail Mohamed Al Mazrouei also announced that the country will slash production by 144,000 barrels per day until the end of 2024. NN: Did i mention the Saudi’s want oil at least at $90 a barrel. Did i mention they will get what they want……