Jakarta –
Saudi Arabia and Russia announced it would cut production and supply oil to push up prices that had fallen. Quoted from CNN, the largest oil exporting country will cut production by up to 1 million barrels per day until the end of August.
The move to cut production is aimed at bringing back oil prices which had fallen. Quoted from Reuters, Russian Deputy Prime Minister Alexander Novak said his country would cut production by up to 500,000 barrels per day in August. Russia will also reduce oil production and exports abroad.
The price of Brent crude oil was recorded at US$ 76 per barrel, up 0.7% compared to the previous trade. Then the price of WTI oil was recorded at US$ 71 or up 0.8%. Oil prices have decreased by more than 40% since March last year.
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The Arabs target the price of Brent crude oil to return to a position of US$ 81 to balance their budget. The Arab kingdom this year recorded a budget deficit after previously having a surplus.
The Organization of the Petroleum Exporting Countries (OPEC), Russia and several other countries announced production cuts of up to 1 million barrels following last month’s meeting.
The Saudi Energy Ministry said the production cut was to strengthen stability and balance in the oil market. Other OPEC+ members will also cut oil production through the end of 2024 amid a less than attractive outlook for global demand. This is also affected by the dismal prospects for China’s economic growth.
(hal/kill)
2023-07-03 15:00:08
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