Saudi Arabia Pledged for Support on Export Curbs

On Tuesday, oil prices extended gains after Saudi Arabia pledged for curbing its oil exports from next month. Organization of Petroleum Exporting Countries (OPEC) called several members on its meeting to boost compliance on cutting down the oil production in the coming months. OPEC aims at helping in reigning in global oversupply and fight with the flagging in prices.

OPEC will cut the output beyond the planned period if necessary.

Oil Prices Statistics

London Brent Crude for delivery in September rose by 64 cents or 1.32% by 11:30 GMT.

WTI, US West Texas Intermediate crude oil futures went up by 63 cents or 1.36%.

In a meeting at St. Petersburg this Monday, Saudi Arabia’s Energy Minister Khalid Al-Falih said that the OPEC and Non-OPEC partners are committed to extend their existing pledge and deal for cutting outputs by 1.8 million bpd beyond March 2018 if required.

The energy minister also added that his country is going to cut its crude oil exports at around 6.6 million bpd in August. OPEC also came to agreement that Nigeria would also join this deal of cutting 1.8 million bpd once it stabilizes at a level of 1.7 million bpd recently. Nigeria was exempted from this deal of production cut till now.

Russia’s energy minister Alexander Novak said that if 100 percent compliance with this output cut deal is made, then it would remove 200,000 barrels per day of oil from the market.

Yaron Mazor is a senior analyst at SuperTraderTV.

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