Crude Prices Surge After Saudi Arabia Pledges for More Output Cuts

The crude prices in the international markets witnessed an uptick after Saudi Arabia, the world's biggest oil producer announced its decision to cut down on the production volumes by another million barrels per day.

Yesterday, the Organization of the Petroleum Exporting Countries (OPEC) and its member partners made no changes to its earlier planned oil production cuts for the rest of 2023. Yet the kingdom country announced further voluntary output trimming which will come into effect from July.

With this, the world's largest oil exporters output will dive to 9 million barrels per day from its earlier record of around 10 million barrels in May, the country's Energy Minister said in a statement.

Both the crude benchmarks gained over 2 per cent on Monday during the early trade session of Asia but they later dipper lower by mid-morning.

On Monday, following the announcement, the crude rates in the international markets traded at $76.81 per barrel for Brent, up by 0.89 per cent and West Texas Intermediate (WTI) at $72.48 per barrel, up by 1.03 per cent.

On April 3, many crude oil producers revealed a combined 1.66 million barrels per day of production cuts until the end of this year. Market analysts, including investment banking firm - Goldman Sachs, had expected the OPEC+ members to keep the crude output unchanged this time.