World oil prices are raising on Tuesday thanks to news of additional cuts in crude production by several countries, in particular Saudi Arabia, according to trading data.
The price of July futures for Brent North sea oil mix rose by 0.47% to 29.78 dollars per barrel, and June futures for WTI oil – by 1.08% to 24.4 dollars per barrel.
On Tuesday, investors are encouraged by news that the UAE, Kuwait, and Saudi Arabia will further reduce oil production to reduce the excess of raw materials on the world market.
The Ministry of the energy of Saudi Arabia ordered Saudi Aramco to reduce oil production in June by an additional 1 million barrels per day to the country’s obligations under the OPEC deal.
The UAE in June will reduce output by an additional 100 thousand barrels per day. Kuwait announced its intention in June to cut oil production by a further 80 thousand barrels per day.
AxiCorp’s analyst Stephen Innes, quoted by Reuters, believes that such cuts should speed up the process of rebalancing the global oil markets.
OPEC+ agreed on April 12 to reduce oil production by 9.7 million barrels per day in may-June, 7.7 million in the second half of the year, and 5.8 million further until the end of April 2022.
The base of reference is taken in October 2018. Still, for Russia and Saudi Arabia, 11 million barrels per day are made, from which, by analogy with all of them, there is a decrease of 23%, 18%, and 14%, respectively.