The news that Saudi Arabia and Russia would decline in oil production supported the rise in oil prices. It is expected that these countries voluntarily reduce their production, which will ease the oil market and move prices upwards.
Saudi Arabia announced yesterday that it has extended its 1 million barrels per day oil production cut, which it had voluntarily implemented in July, to include August. Thus, it was reported that Saudi Arabia’s daily oil production will be around 9 million barrels in August. It was stated that the cut in question is in addition to the voluntary production cut that the country announced in April and will continue until the end of December 2024.
According to the news in the Russian news agency TASS, Russian Deputy Prime Minister Aleksandr Novak announced that his country voluntarily decided to reduce oil exports by 500 thousand barrels per day in August. It was noted that the new decision will affect exports rather than production. Novak had previously announced that Russia had decided to reduce oil production by 500,000 barrels a day in March, which was later extended until the end of the year.
On the other hand, uncertainties in global markets restrain the rise in oil prices. The eyes were turned to the economic data coming from the Organization of Petroleum Exporting Countries (OPEC) meeting to be held this week and the world’s largest oil consumer USA.
It is stated that technically, the range of $75.20 to $75.26 in Brent oil can be viewed as resistance, and the range of $74.76 to $74.64 as support.