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Crude oil futures end higher as Saudi Arabia decides to extend output cut

04 Aug 2023 Evaluate

Crude oil futures ended higher on Thursday after Saudi Arabia announced that it would extend its production cut to next month. The move by Saudi Arabia to extend its voluntary oil output cut of 1 million barrels per day for a third month triggered hectic short-covering in the futures contract, and helped the commodity regain the ground it had lost in the previous session. oil prices were also supported by comments from Russia's Deputy Prime Minister Alexander Novak that Russia would cut oil exports by 300,000 bpd in September.

Benchmark crude oil futures for September delivery rose $2.06 or about 2.6 percent to settle at $81.66 a barrel on the New York Mercantile Exchange. Brent crude for October delivery surged $1.94 or 2.33 percent to settle at $85.14 a barrel on London's Intercontinental Exchange.