Oil Prices Rise As Saudi Arabia Announces Output Cuts


(MENAFN- IANS) London, June 5 (IANS) Oil-producing countries have agreed to continued cuts in production in a bid to shore up flagging prices, the media reported on Monday.
Saudi Arabia said it would make cuts of a million barrels per day (bpd) in July and OPEC+ said targets would drop by a further 1.4 million bpd from 2024, reports the BBC.
OPEC+ accounts for around 40 per cent of the world's crude oil and its decisions can have a major impact on oil prices.
In Asia trade on Monday, brent crude oil rose by as much as 2.4 per cent before settling at around $77 a barrel.
The seven hour-long meeting on Sunday of the oil-rich nations, led by Russia, came against a backdrop of falling energy prices.
Total production cuts, which OPEC+ has undertaken since October 2022, reached 3.66 million bpd, according to Russian Deputy Prime Minister Alexander Novak, the BBC reported.
OPEC+, a formulation which refers to the Organization of Petroleum Exporting Countries and its allies, had already agreed to cut production by two million bpd, about 2 per cent of global demand.
"The result of the discussions was the extension of the deal until the end of 2024," Novak said.
In April, it also agreed a surprise voluntary cut of 1.6 million bpd which took effect in May, a move that briefly saw an increase in prices but failed to bring about a lasting recovery.
On Sunday, Saudi Energy Minister Prince Abdulaziz bin Salman said the cut of one million bpd could be extended beyond July if needed, the BBC reported.
"This is a Saudi lollipop," he said, in what is seen as a bid to stabilise the market.
--IANS
san/ksk/

MENAFN05062023000231011071ID1106385731


IANS

Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.