2023-07-03 08:25:19 ET
- Crude oil futures are rising Monday after Saudi Arabia said it will extend its voluntary 1M bbl/day oil production cut for another month to include August, while Russia said it will cut exports by 500K bbl/day.
- The reduction will take Saudi production to ~9M bbl/day, its lowest level in several years, sacrificing sales volume for what has so far been little reward in terms of higher prices .
- Oil trades modestly higher after the announcements, with WTI crude for August delivery ( CL1:COM ) +1.3% to $71.56/bbl and September Brent crude ( CO1:COM ) +1% to $76.20/bbl.
- ETFs: ( XLE ), ( NYSEARCA: USO ), ( BNO ), ( UCO ), ( SCO ), ( DBO ), ( USL ), ( DRIP ), ( GUSH ), ( USOI ), ( NRGU )
- Energy stocks are up in the pre-market, including Exxon Mobil ( XOM ) +0.6% , Chevron ( CVX ) +0.5% , ConocoPhillips ( COP ) +0.6% , Shell ( SHEL ) +1.7% , BP ( BP ) +2.4% .
- Saudi Arabia had said when announcing its voluntary July reduction of 1M bbl/day a month ago that the cut could be extended, so the latest extension is not a surprise, especially considering crude's continued weakness.
- Oil futures ended June with a gain for the month but WTI crude fell for a second straight quarterly decline and Brent posted its fourth straight quarterly loss .
For further details see:
Saudi Arabia to extend oil production cuts by an extra month, lifting prices