Oil trades higher as market weighs supply cuts by top exporters; Asia expects Saudi to cut August prices

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extend its voluntary output cut of 1 million barrels per day (bpd) to August, while Russia and Algeria volunteered to lower their output and export levels for August by 500,000 bpd and 20,000 bpd respectively. Also, Asian refiners expect Saudi Arabia to lower prices for its crude supply to the region in August, according to a survey by news agency Reuters, even as the top oil exporter pledged to deepen production cuts as part of a broader deal by the Organization of the Petroleum Exporting Countries and its allies, or OPEC+.

Brent crude futures were up $1.28, or 1.7 per cent, to $75.93 a barrel. US West Texas Intermediate crude was at $71.05 a barrel, up $1.26 or 1.8 per cent.

However, oil benchmarks settled down about one per cent in the previous session, after an initial rally, on the back of a gloomy macroeconomic outlook. Back home, on the Multi Commodity Exchange (MCX), crude oil futures due for a July 19 expiry, was last trading higher by 1.11 per cent higher at ₹5,817 per bbl, having swung between ₹5,748 and ₹5,842 per bbl during the session so far, compared to their previous close of ₹5,753 per bbl.

Brent has dropped from $113 per barrel a year ago, sent lower by concerns of an economic slowdown and ample supplies from major producers. However, both Saudi and Russia have been trying to raise oil prices.

Also Read: India's June palm oil imports jump 49% from May over lowest prices in 28 months; check details -The recent output cuts announced by Saudi Arabia and Russia amount to 1.5 per cent of global supply and bring the total pledged by the OPEC+ to 5.16 million bpd. The cuts will take the Saudi's production to the lowest level in several years, sacrificing sales volumes for what has so far been little reward in