WTI crude futures were up nearly 1% before paring some gains to settle around $71 a barrel on Monday as traders weigh supply cuts and prospects of slowing demand. Saudi Arabia announced it would extend its voluntary cut of one million bpd for August and could prolong it further. The country will now produce about 9 million barrels a day, the lowest in several years. Also, Russia said it will lower its oil exports by 500,000 bpd in August, aiming to reduce production by the same amount. However, demand concerns persist. Factory activity in the US fell more than anticipated and at the sharpest rate in nearly three years. Also, manufacturing in China slowed while in the Euro Area and Germany it contracted more than initially anticipated in June. Oil prices fell by nearly 7% in the second quarter of 2023, extending the overall decline in the first half of the year to 12%.
