On July 4, world oil prices rebounded from a previous decline, as indicated by trading data and analysts' commentary. September Brent futures increased by 1.97% to $76.12 per barrel, while August WTI futures rose by 2.02% to $71.2, media reports.
Tamas Varga, an analyst at PVM Oil Associates, suggests that the recent actions of Saudi Arabia and Russia are being re-evaluated, leading to the market's recovery. The expert also predicts a significant supply deficit if production cuts are implemented in the upcoming months.
Additionally, the market is responding to Saudi Arabia's announcement on July 3 of an extension of its voluntary production cut by 1mn barrels per day in August and Russia's reported reduction of 500,000 barrels per day in oil exports in August.
Algeria has also reported a voluntary reduction of 20,000 barrels per day, in addition to the 48,000 barrels per day already begun in May.
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