Oil prices up as Saudi Arabia extends crude cut
Oil prices extended gains on Friday after Saudi Arabia announced it was extending its crude production cuts into September. The one-million-barrels-per-day reduction was implemented in July and August, says IGTV’s Angela Barnes.
(Video Transcript)
Saudi cuts boost oil price
Oil prices are on the rise again today after Saudi Arabia announced that it was extending its crude production cut. The one-million-barrels-per-day cut was first implemented in July and August, but it could still be further extended and deepened beyond September.
Brent chart
Let's have a look at what the oil prices are doing. Let's start with the Brent chart, where you can see that the price is actually up slightly by 0.40% at $85 a barrel, so extending gains there. It's 3 May, it has gained about 20%.
US crude also climbing
And if we look at the crude chart, well, US crude, otherwise known as West Texas Intermediate (WTI), that's also extending gains again today, up by about 0.35% and trading around $81 a barrel. Since 3 May this year, the price is also up about 30%.
The low seen on 3 May was after the US Federal Reserve raised interest rates. Oil prices have been under pressure due to that economic uncertainty and a slow recovery in Chinese demand, also. The production cuts from Saudi Arabia have been slightly supporting prices due to those supply tightness concerns.
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