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Oil is on pace for its best week since April with Russia set to join Saudi Arabia in pumping out less crude

George Glover   

Oil is on pace for its best week since April with Russia set to join Saudi Arabia in pumping out less crude
Stock Market1 min read
  • Oil prices have climbed 6% this week, putting the commodity on pace for its best five-day stretch since April.
  • Those gains have come with top producers pumping out less crude in a bid to drive up prices.

Oil benchmarks are on pace for its best week since April, with hints around the timing of long-expected supply cuts squeezing prices higher.

West Texas Intermediate has jumped 6% to nearly $85 a barrel over the past five days, while Brent is up 4% to just below $88 a barrel over the same period.

The gains have come with the world's top producers electing to pump out less crude in a bid to drive up prices.

Russia's Deputy Prime Minister said Thursday that the Moscow had agreed with its partners from the OPEC+ cartel that it would bring in further output cuts soon.

"We have agreed, but we'll announce main parameters next week," Alexander Novak told President Vladimir Putin in a televised government meeting.

Russia had said it would export 500,000 fewer barrels of crude a day in August and 300,000 less in September – and it could now extend those cuts into October, Novak added.

Meanwhile, the world's other top oil producer Saudi Arabia slashed its output by 1 million barrels a day back in July – and those cuts will likely last until the end of October, according to a recent survey of commodities traders and analysts.


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