- Oil trades higher as concerns about supply cuts counter economic fears
- August ’23 WTI gained $1.53 to trade around $71.32/Bbl
- Saudi Arabia, the world's biggest crude exporter, on Monday said it would extend its voluntary output cut of 1 MMBbl/d to August
- In conjunction, Russia and Algeria committed to reducing their August production and export levels by 0.5 MMBbl/d and 0.02 MMBbl/d, respectively
- Eurozone and UK manufacturing contracted faster than expected in May, while China saw minimal factory activity growth
- Additionally, the market focuses on the U.S. and European central banks as they are expected to hike interest rates to curb persistently high inflation
- Saudi Arabia Vows Market Stability and Commends Russian Production Cuts (Bloomberg)
- Saudi Energy Minister Prince Abdulaziz bin Salman vowed to take "any required measures" for market stability at the OPEC international seminar
- The minister lauded Russia's pledge for a voluntary 0.5 MMBbl/d oil export reduction in August
- Meanwhile, UAE’s Energy Minister Suhail Al Mazrouei endorsed the latest OPEC+ cuts but ruled out additional production cuts in UAE
- Kazakhstan's Oil Production Dips Amid Extensive Power Outages (Reuters)
- Kazakhstan's oil output dropped from July 2 levels by about a fifth to 1.46 MMBbl/d on July 4 due to widespread power outages
- Among the impacted sites, the Kashagan oilfield’s production was halved to 0.175 MMBbl/d, and overall refining volumes plummeted by 46% to 0.147 MMBbl/d