Oil prices rise amid news of production cuts

Based on the trading data from Thursday, there's an upward trend in global oil prices. Brent oil is currently priced at $84.55 per barrel, while North American WTI oil is hovering around $80.90 per barrel. The oil price hike can be attributed to several factors.

To begin with, Saudi Arabia's recent announcement to extend their additional oil production cut by 1 million barrels each day until September end is a significant contributor. Further noting this reduction could be potentially prolonged or even amplified. It's expected that the kingdoms production in September would round out at around 9 million barrels a day.

In addition, investors reacted to the published macro statistics from the United States. The number of initial applications for unemployment benefits in the country for the week ended July 29 increased by 6 thousand compared to the previous week – up to 227 thousand. The current data coincided with analysts' forecasts.

Also, traders continue to win back yesterday's data from the US Department of Energy on crude oil reserves in the country. The report showed that US commercial oil reserves (all reserves except the strategic reserve) decreased by 17 million barrels to 439.8 million barrels. Such a rate of decline in stocks for a week was a record in the history of calculations since 1982.

All these factors together support a positive mood in the oil markets and contribute to further growth in oil prices.