Both contracts extended gains of more than 2% on Friday after the Saudi energy ministry said the kingdom’s output would fall to 9 million barrels per day (bpd) in July from 10 million barrels per day in July. May. The cut is Saudi Arabia’s biggest in years.
The voluntary cut adds to a broader agreement by the Organization of the Petroleum Exporting Countries (OPEC) and its allies, including Russia, to limit supply until 2024, in an attempt by the OPEC+ producer group to boost low crude prices. .
OPEC+ pumps around 40% of world crude and has cut its production target by a total of 3.66 million bpd, equivalent to 3.6% of global demand.
“Saudi Arabia remains more interested than most other members in securing oil prices above $80 a barrel, which is essential to balance its own fiscal year budget,” said Suvro Sarkar, head of the sector team. energy from DBS Bank.