Brent crude price was $84.71 a barrel at 4:39 PM (GMT+1) on Thursday, August 3; this follows a little decline earlier in the day. This came about after Saudi Arabia chose to prolong the end of September 2023 for the production cut it started in July.
According to reports published by its state news agency on Thursday, August 3, the output cuts may be extended or made much more severe.
Saudi Arabia will maintain its production output at 9 million barrels per day, the lowest level in the country’s history.
On August 3, Raad at Eurasia Group, told Bloomberg that Riyadh would not want to upset the apple cart by returning the 1 million barrels per day of supply that markets now anticipate will remain shut in.
Crude prices increase as supplies decrease and production is reduced. Goldman Sachs analysts recently predicted that by the end of 2023, the price of Brent crude may soar to $86 per barrel globally.
On Wednesday, August 2, Brent crude increased to $85.58 a barrel.
Reuters also reports that oil prices have risen significantly since Russia and Saudi Arabia announced supply cuts in early July 2023, with Brent crude oil, climbing from around $76 a barrel to above $83 per barrel.
OPEC will be meeting on Friday, August 4, to review the oil market and recent crude production cuts.
