Crude oil declines over $4

London: 5 October 2023 (TraderMade): Oil prices dropped due to concerns about demand caused by macroeconomic challenges, despite Saudi Arabia and Russia pledging to extend crude output cuts until the end of this year.

Current crude prices

Brent crude was $85.96 on 5 October, dropping from $91.43 on 3 October. Similarly, US-based West Texas Intermediate crude (WTI) was $89.23 on 3 October and declined to $84.25 on 5 October.

Supply cuts

Saudi Arabia confirmed that it will continue its voluntary crude supply cut of 1 million barrels per day till the end of 2023. Similarly, Russia will continue with voluntary 0.3 million barrels per day export cuts till 2023 end. It will also review its 0.5 million barrels per day output cut in November.

Russia may ease the diesel ban in the upcoming months. Similarly, a strong US Dollar drives the investor sentiment. Crude oil trades in US Dollars globally. A strong USD makes crude oil expensive for importers. That factor decreases the demand.