Crude oil prices rise as production and export cut by nations

RIYADH: After months, oil prices have surged in the global market as oil-producing countries cut production and exports. Crude oil reached Rs 86 dollars per barrel. The availability of crude oil in the market also decreased. Brent crude oil rose 75 cents to $85.55 a barrel. Intermediate crude rose 80 cents to $82.05 a barrel. The decrease in exports from producer countries such as Saudi Arabia and Russia led to the increase in prices. Demand has increased in the global market as production and exports have been cut.

Chinese companies have cut stockpiles as OPEC nations have raised prices. This led to a decrease in oil exports, including from Saudi Arabia. Saudi oil exports to China were down 31 percent in July compared to June. Meanwhile, China continues to import cheap Russian oil. This is possible because of the existing Russia-China agreement.