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Oil Edges Up on Aramco’s Production Decision Amidst Geo-Political Tensions

5 months ago

Crude oil prices experienced a modest uptick as Saudi Aramco announced its decision to refrain from further increasing oil production capacity to 13 million barrels a day, adhering to the Saudi government’s directive to maintain it at 12 million barrels instead. The market’s attention is also focused on the potential US response to the recent lethal attack on American troops in Jordan, raising concerns about a potential escalation of tensions in a region critical to global crude production.

Concurrently, Treasury yields extended their decline on Tuesday after the US Treasury revised down its quarterly borrowing estimate. This development alleviated concerns surrounding the surge in debt issuance aimed at covering the federal deficit.

The New Zealand dollar maintained its upward momentum following optimistic remarks from an official at the country’s central bank. Meanwhile, the US dollar exhibited minimal movement as traders awaited key data releases and the Federal Reserve’s policy decision later this week.

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