LONDON, July 4 (Reuters) – Crude oil prices rose on Tuesday as markets weighed supply cuts in August by major exporters Saudi Arabia and Russia on the back of an uncertain global economic outlook.
Brent futures rose 32 cents (0.42%) to $75.73 a barrel by 0805 GMT. US West Texas Intermediate crude rose 32 cents (0.45%) to $70.96 a barrel.
Saudi Arabia announced on Monday that it would extend its voluntary production cut of 1 million barrels per day (bpd) into August, while Russia and Algeria set August production and export levels at 500,000 and 20,000 barrels per day, respectively. offered to withdraw.
Full implementation would result in a total reduction of 5.36 million barrels per day compared to August 2022 levels, possibly more as several Member States failed to meet their quotas. Yes, said PVM analyst Tamas Varga.
However, oil indicators settled around 1% in previous trading after initial gains on the back of a gloomy macroeconomic outlook.
Sluggish demand in China and Europe has dampened global factory activity, and U.S. manufacturing also fell further in June, the last seen in the first wave of the COVID-19 pandemic, according to business surveys. level reached.
Some analysts said the widespread uncertainty is likely to overshadow OPEC+’s efforts to tighten supply.
Analysts at Eurasia Group said markets will continue to be weighed down by expectations of higher U.S. interest rates and concerns that the U.S. will join the EU in a recession.
Despite the best efforts of Saudi Arabia and Russia, Naeem Aslam, chief investment officer at Zaye Capital Markets, said: “The days of oil prices above the $90 level again may be over. It is likely to consolidate between the dollar levels.” 65 and 70 price range. ”
US markets will be closed on Tuesday for Independence Day.
Reported by Natalie Glover, who lives in London. Additional reporting by her Arathy Somasekhar from Houston and Trixie Yap from Singapore.Editing: Tom Hoag, Jerry Doyle, Alexander Smith
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