Crude Sharply Higher as Saudi Arabia Extends its Crude Production Cuts

Crude Sharply Higher as Saudi Arabia Extends its Crude Production Cuts

September WTI crude oil (CLU23) on Thursday closed up +2.06 (+2.59%), and Sep RBOB gasoline (RBU23) closed down -1.11 (-0.40%).

Crude oil and gasoline prices Thursday settled mixed.  Crude prices recovered from a 1-week low Thursday and rallied sharply after Saudi Arabia said it would extend its 1 million bpd production cut through September.  Dollar weakness also boosted energy prices after the dollar index fell from a 3-1/2 week high and turned lower.

Crude prices rallied Thursday after Saudi Arabia said it will extend its 1 million bpd cut in crude production into September and said its crude output may "be extended, or extended and deepened."  The cut in Saudi production keeps its crude output at about 9 million bpd, the lowest level in several years.  Also, OPEC crude production in July fell -900,000 bpd to a 1-3/4 year low of 27.79 million bpd.  The OPEC+ Joint Ministerial Monitoring Committee will hold an online review Friday to gauge the impact of the group's supply reductions.