Oil prices up now – supply cuts by Saudi Arabia and Russia
Arathy Somasekhar 07/10, Reporter at Reuters News, nominated for Journalist of the Year award, covering the world's largest crude market and the energy industry as global fuel demand reaches record levels and oil prices rally to multi-year highs, 07/10/23, “Oil ticks up on OPEC+ cuts; traders eye economic data,” https://www.reuters.com/article/global-oil-idAFL4N38X01Y //SBM
July 11 (Reuters) - Oil prices edged higher on Tuesday, recouping some of the losses from the previous session, as traders focused on supply cuts by the world’s biggest oil exporters Saudi Arabia and Russia and awaited data that could help ascertain demand.
Brent crude futures rose 33 cents, or 0.4%, to $78 a barrel by 0050 GMT, and U.S. West Texas Intermediate crude was up 35 cents, or 0.5%, at $73.34.
Prices had eased 1% on Monday on higher expectations that further U.S. interest rate hikes are coming and as investors took profit after last week’s 4.5% rise.
While central bank officials said the U.S. Federal Reserve will likely need to raise interest rates further to bring down inflation, markets took comfort from indications the officials also think the current monetary policy tightening cycle was getting close to an end.
Supply cuts by the world’s biggest oil exporters Saudi Arabia and Russia set for August helped to lift the benchmark prices, which were also supported as the U.S. dollar fell to a two-month low. A weaker dollar makes crude cheaper for holders of other currencies and often boosts oil demand.
Saudi Arabia last week said it would extend its 1 million barrels-per-day (bpd) cut at least to August, and Russia said it would cut its oil exports next month by 500,000 bpd.