Commodities
Oil Price Resurgence Has Further to Run After the Saudis Turn the Screw
- Riyadh extended its 1 million b/d cut until end of the year
- There’s few sources of extra supply, few options for consumers
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When crude surges above $90 a barrel and the leaders of Saudi Arabia and Russia get on the phone to congratulate each other on a job well done, oil consumers should take note.
After half a year in the doldrums, the price of the world’s most important commodity is on a tear as the biggest players in OPEC+ get serious about making sure supply doesn’t exceed demand. The 1 million barrel-a-day output cut the Saudis initially pledged solely for the month of July will now be in place until year-end, alongside a smaller export reduction from Russia.