- Oil trades higher following Saudi Arabia and Russia’s extended supply cuts
- August ’23 WTI gained 76c this morning to trade around $71.40/Bbl
- Saudi Arabia on Monday announced it would extend its voluntary cut of 1 MMBbl/d into August
- Additionally, Russia will reduce its oil exports by 0.5 MMBbl/d in August, aiming to tighten global supplies
- Equities trade higher, and the dollar strengthened, making commodities priced in USD expensive for holders of other currencies
- Manufacturing across the eurozone and the UK contracted faster than expected following ECB’s monetary policy tightening
- In Asia, marginal factory activity growth is observed in China, while Japan and South Korea see contractions in May
- Saudi Arabia and Russia Extend Oil Output Cuts (Bloomberg)
- Saudi Arabia will carry forward its July production cut of 1 MMBbl/d production cut into August, according to a statement from the state-run Saudi Press Agency
- In a concurrent move, Russian Deputy PM Noval said that the nation will slash its oil exports by 0.5 MMBbl/d in August
- Furthermore, Saudi Arabia has hinted that it may extend its production cut beyond August, and its energy minister Prince Abdulaziz, who will be speaking at an OPEC conference on Wednesday, has said that he will keep traders guessing about future plans
- OPEC+ already has in place cuts of 3.66 MMBbl/d, including last year's 2 MMBbl/d cut and April’s voluntary reductions of 1.66 MMBbl/d until December 2024
- India's Record Russian Oil Intake Faces Potential Slowdown (Bloomberg)
- India's Russian oil imports hit a record high of 2.2 MMBbl/d in June, outdoing combined Saudi and Iraqi imports, according to Kpler
- However, imports could decline next month due to infrastructure limitations and reduced Russian supply