Tuesday’s early trading saw an uptick in oil prices as traders evaluated the effects of Saudi Arabia and Russia’s supply curbs, while persisting concerns about a global economic slowdown kept prices under pressure.
At 10.20 am local time (0720 GMT), international benchmark Brent crude was trading at $75.25 per barrel, up 0.80% from the previous trading day’s closing price of $74.65 per barrel.
West Texas Intermediate (WTI), the American benchmark, was trading at the same time at $70.41 per barrel, up 0.88% from the session’s close of $69.79 per barrel.
Saudi Arabia, Russia, and Algeria indicated last week that they intended to tighten their oil supply controls, which caused an increase in oil prices amid worries about a sluggish global economy.
The announcement last week by Saudi Arabia, Russia, and Algeria that they would tighten oil supply restrictions led to an increase in oil prices amid worries about sluggish global economic growth.
Saudi Arabia announced that it would extend its voluntary 1 million barrels per day (bpd) cut from July into August for another month, with a potential subsequent extension.
With the new reduction, Saudi Arabia will produce about 9 million barrels per day for the month of August.
In the meantime, Russia said that it would voluntarily decrease its oil shipments to international markets by 500,000 barrels per day in August “as part of the effort to ensure the oil market remains balanced.”
This was in addition to the nation’s 700,000 bpd output decrease from February.
Algeria also announced that it would reduce its output in August by an additional 20,000 barrels per day. The 48,000 barrels per day reduction in output that was announced in April will be supplemented by this one.