On Monday, oil prices opened on the rise as Saudi Arabia announced plans to further cut production by another 1 million barrels per day in July. This will bring the kingdom’s production levels to their lowest in recent years.
The decision made in Riyadh has become the basis for a rise in global oil prices, offering hope for a reduction in global supply and stabilization of the market. Prices for West Texas Intermediate (WTI) rose nearly 5% at the start of trading, showing a sharp increase.
However, after an initial surge, prices have slowed their growth and WTI is currently trading at around $73 per barrel. There is still a lot of uncertainty ahead, but Saudi Arabia’s production cut is certainly a positive sign for the oil market, which has been suffering from excess supply and low demand. The question remains: will this be enough to sustain oil prices in the long term?
