Oil Prices Rise as Saudi Arabia Announces Production Cuts

Oil Prices Rise as Saudi Arabia Announces Production Cuts

Oil prices have increased following Saudi Arabia's announcement of a million barrel per day (bpd) cut in production for July, accompanied by continued cuts from other Opec+ members. Opec+ accounts for approximately 40% of global crude oil production, making its decisions influential in shaping oil prices.

Brent crude oil experienced a rise of up to 2.4% in Asian trade, settling at around $77 a barrel. The move comes as oil producers aim to stabilize prices amidst falling energy prices and the backdrop of the Russian invasion of Ukraine.

How do you think the oil market will be affected by geopolitical tensions and the efforts of oil-producing countries to control production levels?