London
Oil prices fell on Wednesday despite Saudi Arabia’s announcement that it would continue its crude output cuts through the end of 2023, aiming to stabilize prices. Brent crude futures dropped by 0.64% to $90.34 a barrel, and U.S. West Texas Intermediate crude (WTI) fell 0.74% to $88.57 per barrel.
Despite efforts to manage production, concerns related to macroeconomic headwinds and high-interest rates have weighed on oil prices, raising fears about future demand. Additionally, the strength of the U.S. dollar has made oil more expensive for buyers using other currencies, potentially impacting demand.
Saudi Arabia’s energy ministry confirmed its intention to maintain its voluntary 1 million barrel per day crude supply cut until the end of 2023. Russia also expressed its commitment to continuing its current 300,000 barrel per day crude export cuts throughout the year and plans to review its voluntary 500,000 barrel per day output cut in November.
The ongoing discussion about Russia’s diesel export ban and uncertainties surrounding the global economy’s performance have contributed to the oil market’s volatility. While production cuts are designed to provide price stability, various factors continue to influence the outlook for oil demand and pricing, keeping the market in flux.
