SINGAPORE : Oil prices dipped in early Asian trade on Monday as investors tread cautiously ahead of fresh economic data from top consumers the United States and China this week, while expected crude supply cuts from Saudi Arabia and Russia supported the market.
Saudi Arabia will extend its 1 million barrels per day output cut into August and Russia will cut crude exports by 500,000 bpd. Instead of cutting output, Russia will be using the crude to produce more fuel to meet domestic demand, a government source told Reuters on Friday. In the Gulf, Iran's seizure of a supertanker managed by U.S. major Chevron last week raised concerns about the threat to shipping in the region, including in the Strait of Hormuz.
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