- Oil hovered around $76 per barrel as traders assessed supply curtailment efforts by OPEC+ leaders Saudi Arabia and Russia. Brent rose 1.7% in London, with subdued volumes due to the US July 4 holiday. Saudi Arabia extended its 1 million barrel per day supply reduction into August, as expected. Russia announced reduced exports and output, while Algeria planned smaller cuts.
- Following the announcements, prices have experienced fluctuations, but Tuesday's increase provided a more optimistic view for producers. Alongside the upward movement in overall prices, there are also indications of optimism in the futures market. On Monday, Brent's nearest timespread reached its highest level in approximately a month, suggesting anticipation of a decrease in supply.
Why it matters
Crude oil prices are encountering a significant obstacle from a technical standpoint. On Monday, Brent futures surpassed their 50-day moving average but were unable to maintain a closing price above that threshold. Since entering a rangebound phase in late April, they have generally faced challenges in surpassing that particular benchmark.
