Crude Oil Prices Rise As Saudi Leads OPEC To Cut Production Level
Crude Oil prices have risen after Saudi Arabia said it would make cuts of a million barrels per day (BPD) in July. Other members of Organization of the Petroleum Exporting Countries (OPEC), a group of oil-producing countries, also agreed to continued cuts in production in an attempt to shore up flagging prices.
OPEC+ accounts for around 40% of the world’s crude oil and its decisions can have a major impact on oil prices.
Read Also:
USÂ Congress Approves Debt Deal To Prevent A US Default
In Asia trade on Monday, Brent crude oil rose by as much as 2.4% before settling at around $77 a barrel. OPEC+ said production targets would drop by a further 1.4 million bpd from 2024.
The seven hour-long meeting on Sunday of the oil-rich nations came against a backdrop of falling energy prices. Oil prices soared when Russia invaded Ukraine last year, but are now back at levels seen before the conflict began.
In October last year OPEC+, a formulation which refers to the organization of petroleum exporting countries and its allies, agreed to cut production by two million bpd, about 2% of global demand. In April this year the group agreed to a further cuts, which were due to last to the end of this year.