A handed over ‘Bay Drill 3′ jack-up drilling rig is towed by a tugboat at CIMC Raffles’ construction base in Yantai city, eastern China’s Shandong province, April 26, 2023.
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Crude oil prices were little changed on Tuesday, hitting a three-month high on Monday on signs of tighter global supplies as producers cut production and strong demand from the United States, the world’s largest fuel consumer. traded nearby.
Brent crude futures traded at $85.30 a barrel at 0135 GMT in October, down 13 cents (0.15%) from the close. Last month’s Brent price closed at its highest level since April 13 on Monday.
US West Texas Intermediate crude fell 0.1% (11 cents) to $81.69 a barrel from the previous settlement price, the highest since April 14.
“In our view, oil prices are on track to reach 2023 highs. This Friday’s OPEC meeting announced that Saudi Arabia’s voluntary supply cuts would be extended by another month. ,” analysts at National Australia Bank said in a note on Tuesday.
Analyst Predict Saudi Arabia will cut another 1 million barrels per day (bpd) of voluntary oil production until September to provide additional support to the market at virtual meetings with other major oil producers scheduled for Friday. extend for a month.
In June, the Organization of the Petroleum Exporting Countries and its allies (known as OPEC+), including Russia, agreed to a broader deal to limit oil supplies until 2024, and Saudi Arabia pledged further voluntary production cuts in July. On July 3, Saudi Arabia announced that the cuts would also include August, adding: can become further extended.
Saudi Arabia’s production cuts fell slightly short of targets, with output dropping by 860,000 bpd in July and total OPEC output by 840,000 bpd, according to Reuters. investigation It aired on Monday.
Data showing supply cuts are in line with US data released on Monday, which saw fuel demand rise to 20.78 million barrels per day in May, the highest level since August 2019. Energy Information Bureau It also showed that gasoline demand, represented as a product supplied to the market, surged to 9.11 million barrels per day, the highest level since June 2022.
U.S. crude oil and gasoline inventories declined A Reuters poll last week estimated that crude inventories fell by an average of about 900,000 barrels in the week ending July 28.
