What Saudi Arabia production cuts could mean for the price of oil
BNN Bloomberg
The price of oil rose on Monday following Saudi Arabia’s decision to cut oil production in July, but commodity experts are split on what the move could mean for oil prices in the long run.
Oil rose to US$72.82 per barrel as of Monday morning, marking a 1.53 per cent rise in the commodity after the Saudis announced a production cut of one million barrels per day next month.
“It’s a one month deal and there's nobody else jumping in to help so it makes it a unique situation,” Robert Yawger, managing director and energy futures strategist at Mizuho Americas, told BNN Bloomberg on Monday.
Yawger noted that the cut didn’t result in too much bang for the buck and cautioned that whatever supply the Saudis are taking off the market, Russia could easily supply.
