Bloomberg reports OPEC's biggest oil production cut in three years

Oil production by OPEC countries fell at the sharpest pace in three years thanks to the actions of Saudi Arabia, which almost fulfilled the promise to cut production by another 1 million barrels of oil per day, Bloomberg writes citing data from its study.

Production by OPEC countries in July fell by 900,000 barrels of oil per day and averaged 27.79 million barrels, Bloomberg notes. This is the biggest cut since 2020, when the cartel cut production in the midst of the Covid epidemic. Saudi Arabia averaged 9.15 million barrels of oil per day last month, the agency said.

According to traders' forecasts, Riyadh intends to announce the extension of production cuts in September, due to which the demand for oil will continue to grow. After OPEC's cut in production, oil prices, which were negatively affected by concerns about insufficient production activity in China and a possible recession in the US, began to rise and recently reached a maximum in the last three months.