Oil Gains As Saudis Extend Output Cut, Hint At Deeper Reduction
(Bloomberg) -- Oil rose after Saudi Arabia prolonged its unilateral production cut by another month and hinted that deeper reductions may be on the way.
The OPEC+ leader's cut of 1 million barrels a day will now last into September, leaving output at about 9 million barrels a day, and may “be extended, or extended and deepened,” according to a statement on the state Saudi Press Agency. West Texas Intermediate rose 2.6% to settle above $81 a barrel.
Crude rallied last month, with WTI erasing its year-to-date losses, after the Organization of Petroleum Exporting Countries and its allies cut production. The surge had lifted prices to the highest since April, spurring concerns that they may pull back after such a rapid gain. Oil dropped by 2.3% on Wednesday following a downgrade of US credit by Fitch Ratings that weighed on broader markets.
Meanwhile, gasoline futures settled lower for the fourth straight day as US implied demand declined for a fourth week.
On Friday, the OPEC+ Joint Ministerial Monitoring Committee is due to hold an online review of the market to gauge the impact of the supply reductions.
--With assistance from Paul Burkhardt and Devika Krishna Kumar.
More stories like this are available on bloomberg.com
©2023 Bloomberg L.P.
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