Oil prices rise on supply cuts by top exporters

July 06, 2023 (MLN): Oil prices rose on Thursday, extending gains amid supply cuts by Saudi Arabia and Russia, the top oil exporters.

Brent crude is currently trading at $76.62 per barrel, up by 0.28% on the day.

While West Texas Intermediate crude (WTI) is trading at $72.02 per barrel, up by 0.34% on the day.

Regardless of facing pressure from concerns over global economic slowdown and further hikes in the U.S. and Europe, the commodity witnessed gains on supply cuts.

"Despite calls for supply cuts over past months, oil prices have largely remained locked within a ranging pattern as lingering caution around the demand outlook continues to put a cap on the upside," said Yeap Jun Rong, market strategist at IG, as Reuters reported.

Weighing on the demand outlook, China's services activity expanded at the slowest pace in five months in June, a private-sector survey showed on Wednesday, as weakening demand weighed on post-pandemic recovery momentum.

However, U.S. crude stocks fell by about 4.4 million barrels in the week ended June 30, while gasoline and distillate inventories rose.

On Wednesday, Saudi energy minister Prince Abdulaziz bin Salman said that Russia-Saudi oil cooperation is still going strong as part of the OPEC+ alliance, which will do "whatever necessary" to support the market.

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