Oil prices were on the rise on Monday, June 5, following Saudi Arabia’s announcement that it would cut its oil output by one million barrels a day in July.

The price of a barrel (159 litres) of North Sea Brent for delivery in August stood at 77.03 dollars on Monday morning, 90 cents more than on Friday.

The price of a barrel of U.S. West Texas Intermediate (WTI) for July delivery rose by 92 cents to 72.66 dollars.

Prices had risen even more significantly at times overnight.

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Following a meeting of the oil cartel OPEC+ on Sunday, Saudi Arabia announced the cut following hours of negotiations.

The measure, which Riyadh said could be extended beyond July, comes as oil prices are on decline due to a weakened global economy.

Apart from a brief increase in April, the oil price has been falling for about a year: In mid-2022, a barrel of OPEC oil cost around 115 dollars.

As early as October 2022, the alliance with a global market share of about 40 per cent decided to cut production by two million barrels a day.

In contrast to Saudi Arabia and other OPEC countries, however, the United Arab Emirates could raise its production to some extent in the coming year.

The Star