Oil rose Monday after top exporters Saudi Arabia and Russia announced supply cuts for August, overshadowing concern over a global economic slowdown and the potential for further increases to U.S. interest rates.
Saudi Arabia on Monday said it would extend its voluntary cut of 1 million barrels per day (bpd) for another month to include August, the state news agency said.
Shortly after the Saudi announcement, Russian Deputy Prime Minister Alexander Novak said Moscow would reduce its oil exports by 500,000 barrels per day in August, further tightening global supplies.
The moves are seen as the latest attempts by major producers to stabilize markets rocked by factors, including continued fallout from the Russian invasion of Ukraine and China’s faltering economic recovery.
The cut by Saudi Arabia, the world’s biggest crude exporter, was first announced after a June meeting of oil producers and took effect at the weekend.
Saudi Energy Minister Prince Abdulaziz bin Salman Al Saud noted at the time that it was “extendable.”
