Oil prices rose marginally on Friday amid supply concerns in
the global oil market.
Brent crude rose by 1.7 percent to reach $77 a barrel — the
first time since May 24.
The US West Texas Intermediate crude, meanwhile, gained two
percent to hit $73 a barrel.
Earlier in the week, Saudi Arabia and Russia announced fresh
production cuts.
While Saudi Arabia said it would extend its voluntary output
cut of one million barrels per day (bpd) until August, Russia pledged to reduce
production by 500,000 bpd.
The output reduction is in addition to prior cuts.
In October 2022, the Organisation of Petroleum Exporting
Countries (OPEC) and its allies, known as OPEC+, agreed to slash oil output by
2 million barrels per day (bpd).
On the back of the agreement, Saudi Arabia and some members
of the OPEC+, in April 2023, announced voluntary cuts amounting to 1.66 million
bpd.
At the last meeting of the oil cartel in June, Saudi Arabia
made another voluntary cut of one million bpd.
OPEC+ alliance aims to achieve balance in global oil markets
and avoid an accumulation in inventories.
Nigeria, Africa’s largest oil producer, voluntarily cut its
production by 84,000 bpd, thus projected to export 1.742 million bpd.
In the first three months of 2023, the country produced
1.25mbpd, 1.3mbpd, and 1.26mbpd respectively.
Between April and May, oil output increased from 1.245
million bpd to 1.427 million bpd.
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