Saudi Arabia and Russia are extending thier oil output cuts:
- The Saudi Energy Ministry said it would extend July’s cut of 1 million barrels per day through August to support “the stability and balance of oil markets.”
- Russian Deputy Prime Minister Alexander Novak said Russia will cut production by an additional 500,000 barrels a day in August
The Saudi move will keep their output at 9 million barrels per day.
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TD Securites oil analysts say the combined output cuts from OPEC+
- “are likely to more than offset the surplus accumulated in the first half of 2023,”
and forecast a lift in the price of US West Texas Intermediate (WTI) to $90 / barrel