Oil Continues Its Gains and Hovers Near Highest Levels

Oil prices continued their gains on Monday, approaching their highest levels since mid-April, after Saudi Arabia and Russia, two major oil producers, committed to continuing supply cuts for another month in order to maintain balance in global markets and support prices. As of 00:23 GMT, Brent crude futures increased by 25 cents or 0.3% to $86.49 per barrel, while West Texas Intermediate crude futures rose by 23 cents or 0.3% to $83.05 per barrel. Both crude benchmarks posted gains for the sixth consecutive week last week, marking the longest streak of gains since December 2021 and January 2022. Prices have been supported by several factors in recent weeks, including expectations of a slowdown in U.S. interest rate hikes and reduced OPEC+ supplies, as well as hopes of stimulus to revive oil demand in China, the world’s largest crude importer, following a slowdown in the second quarter. On Thursday, Saudi Arabia, the world's largest oil exporter, extended its voluntary production cuts of one million barrels per day until the end of September and indicated that it might extend these cuts again or increase the reduction. The kingdom’s production in September is expected to be around nine million barrels per day. Additionally, Russia announced on Thursday that it would reduce oil exports by 300,000 barrels per day in September.