Oil is up amid the global slowdown and as Saudi Arabia cuts production
London — Oil prices rose on Tuesday after Saudi Arabia said it had cut production in July, although concerns over a slowdown in global economic growth kept a lid on markets. Benchmark Brent crude oil was up 60c at $73.21 a barrel by 7.45am GMT. US light crude was 60c higher at $67.80. Saudi Arabia told oil cartel Opec that it had reduced crude output by 200,000 barrels per day (bpd) to 10.29-million bpd in July. Opec itself, using secondary sources, estimated in a report published on Monday that Saudi production was at a slightly higher level of 10.39-million bpd last month. However, both figures suggest the kingdom, de facto leader of Opec, is keen to avoid a repeat of a global glut that has depressed prices over the past few years. Saudi Arabia is Opec’s biggest producer and the only major exporter that can easily adjust output to balance global supply. The lower Saudi output comes at a time of expected export declines from Iran as the US re-imposes sanctions on Tehran’s oil indus...
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