Saudi Arabia Maintains Production Cuts, Oil Prices React
Oil prices fell as Saudi Arabia confirmed it will continue its crude output cuts until the end of 2023, but concerns over demand stemming from macroeconomic headwinds offset the news. Brent crude futures dropped 0.64% to $90.34 a barrel, while U.S. West Texas Intermediate crude fell 0.74% to $88.57 per barrel. The decline in oil prices is attributed to worries about high interest rates impacting the demand outlook and anticipation of the upcoming OPEC meeting. Additionally, a strong U.S. dollar and the euro zone's economic contraction further weighed on investor sentiment.