Following supply reductions by Saudi Arabia and Russia, oil is poised to achieve its highest monthly gain since the start of 2022 as prices surge.
Both Brent crude and West Texas Intermediate (WTI) are heading towards ending July with their most significant monthly advances since January 2022.
At present, Brent crude, the global benchmark, is trading above $85 per barrel, marking a 13.7% increase for the month. Similarly, the US crude benchmark, West Texas Intermediate, has exceeded $81 per barrel, reflecting a monthly rise of 16.4%.
Unprecedented demand has exerted upward pressure on oil prices, with production cuts from oil-rich nations threatening to constrict global supply even further.
Industry analysts anticipate that Saudi Arabia will prolong its voluntary cutback of 1 million barrels per day past August. In addition, OPEC+ agreed last month to curtail oil supply through 2024.
Russia’s Deputy Prime Minister, Alexander Novak, has also indicated that the leading producer plans to reduce crude exports by 500,000 barrels per day in the upcoming month.
