Oil Prices Rise After OPEC Pledge to Resume Production Cuts

By : Aldo Bella Putra | Wednesday, July 26 2017 - 10:59 IWST


INDUSTRY.co.id - Tokyo - London's Brent crude for September delivery closed up 1.1 percent, or 55 cents, to $ 49.15 a barrel in electronic trading on Monday (24/07/2017) thus disclosed Reuters in Tokyo, Tuesday (25/07/2017).

The increase was followed by a rise in the price of light sweet crude or West Texas Intermediate (WTI) in the US futures market by 0.7% or 31 cents to US $ 46.65 per barrel.

The rise in crude oil prices today came after Saudi Arabia pledged to limit exports next month and OPEC called on several member states to comply with the decision to cut crude output.

The move by Saudi Arabia to help control the oversupply of oil in the global market and ease the decline in crude oil prices that have occurred in recent years.

The rise in crude prices was also bolstered by a Halliburton executive statement saying that growth in rig numbers in North America slowed. The statement also resulted in the failure of the explosive shale oil production in the United States.

In a ministerial meeting at St. Khalid Al-Falih, Saudi Energy Minister, said that the Organization of the Petroleum Exporting Countries (OPEC) and non-OPEC partners committed to extend a cut of 1.8 million barrels per day (Bph). If required, this policy may apply until March 2018.

The Saudi minister added that his country would limit crude exports by 6.6 million barrels per day in August, nearly a million barrels per day below last year's level.

OPEC also agreed that Nigeria would join the deal by limiting or reducing its output from 1.8 million bpd, after stabilizing at that level from 1.7 million bpd recently. Nigeria is freed from cutting the output.

Meanwhile, Alexander Novak, Russia's Energy Minister, said an additional 200,000 bpd could be removed from the market if compliance with a global deal to reduce production reached 100%. Compliance has been done up to 98% in the last month. (Abraham Sihombing)

News Comment

Today's Industry

NORD-DuoDrive.jpg: The innovative and patented DuoDrive geared motor reaches outstanding system efficiency Image: NORD DRIVESYSTEMS

Selasa, 17 Mei 2022 - 14:00 WIB

NORD DRIVESYSTEMS at LogiMAT in Stuttgart From 31st May to 2nd June 2022 NORD will present innovative drive solutions for intralogistics

The specialist LogiMAT exhibition in Stuttgart offers as comprehensive overview of the intralogistics and process management market. As one of the market leaders for drive technology, NORD presents…

President Jokowi attends the meeting between ASEAN leaders and American entrepreneurs at Intercontinental the Willard Hotel, Washington DC, Thursday (05/12). Photo by: Laily Rachev

Selasa, 17 Mei 2022 - 13:00 WIB

President Jokowi Invites US CEOs to Boost Cooperation with Indonesia

President Joko “Jokowi” Widodo has invited company CEOs in the United States to boost cooperation with ASEAN countries, particularly Indonesia.

President Jokowi, President Biden, and ASEAN Leaders on a group photo prior to the dinner, at the White House, Washington D.C., Thursday (05/12)

Selasa, 17 Mei 2022 - 12:28 WIB

President Jokowi, ASEAN Leaders Attend Dinner Hosted by US President

President Joko “Jokowi” Widodo Thursday (05/12) attended a dinner with the leaders of ASEAN countries hosted by President of the United States Joe Biden at the White House, Washington D.C.

(Photo: © 2022 KRAIBURG TPE)

Selasa, 17 Mei 2022 - 11:23 WIB

TPE unleashes benefits for pet accessories

The pet care market is rapidly expanding as pet ownership increases, as does spending on pet food, grooming tools, and accessories. Pet owners are significantly concerned about the prevalence…

Sergey Sedov, Founder and CEO of Robocash Group

Jumat, 13 Mei 2022 - 16:15 WIB

Robocash Group reached 2 BN USD of disbursement and issued audited financial report of 2021

Robocash Group publishes the audited combined financial statements for the year ended 31 December 2021. The Group reached an all-time high 2 BN USD of issued financing and is expected to increase…