- Oil spikes as Saudi Arabia extends its million-barrel output cut may go deeper
- September ’23 WTI gained $1.18 this morning to trade around $80.67/Bbl
- Saudi Arabia will extend its voluntary cut of 1 MMBbl/d through September, according to a state-run Saudi press agency
- According to a source from the Ministry of Energy, the cut can be “extended or extended and deepened”
- Furthermore, Russia announced to cut 0.3 MMBbl/d of exports in September
- Fitch downgraded the main U.S. credit rating on Wednesday, reflecting a projected fiscal decline and escalating government debt
- Crude prices fell toward $79/Bbl yesterday following a spike in treasury yields and the strong dollar weighing on commodities and equities
- Additionally, U.S. crude inventories saw a record draw of 17 MMBbl last week, indicating a significant tightening of supply
- Russian oil continues to defy G-7 sanctions (Bloomberg)
- Several of Russia's refined oil products, including naphtha and fuel oil, are trading above the price caps established by the G7 nations
- Two price caps were established in February for Russian refined fuels - $100/Bbl for high-value products and $45 for lower ones
- Despite the caps, naphtha and fuel oil are trading above the lower limit, while diesel surpasses the higher one, according to Argus
- Meanwhile, gasoil and gasoline prices are nearing the respective cap limits amid a global surge in fuel value