Oil price rises to $77 a barrel — first time in six weeks

Oil prices rose marginally on Friday amid supply concerns in the global oil market.

Brent crude rose by 1.7 percent to reach $77 a barrel — the first time since May 24. 

The US West Texas Intermediate crude, meanwhile, gained two percent to hit $73 a barrel.

Earlier in the week, Saudi Arabia and Russia announced fresh production cuts. 

While Saudi Arabia said it would extend its voluntary output cut of one million barrels per day (bpd) until August, Russia pledged to reduce production by 500,000 bpd. 

The output reduction is in addition to prior cuts. 

In October 2022, the Organisation of Petroleum Exporting Countries (OPEC) and its allies, known as OPEC+, agreed to slash oil output by 2 million barrels per day (bpd). 

On the back of the agreement, Saudi Arabia and some members of the OPEC+, in April 2023, announced voluntary cuts amounting to 1.66 million bpd.

At the last meeting of the oil cartel in June, Saudi Arabia made another voluntary cut of one million bpd.

OPEC+ alliance aims to achieve balance in global oil markets and avoid an accumulation in inventories.

Nigeria, Africa’s largest oil producer, voluntarily cut its production by 84,000 bpd, thus projected to export 1.742 million bpd.

In the first three months of 2023, the country produced 1.25mbpd, 1.3mbpd, and 1.26mbpd respectively.

Between April and May, oil output increased from 1.245 million bpd to 1.427 million bpd.