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

Launch of OKINO C100, tiny vape with O-Tape Coil technology. (Photo: OKINO Public Relations)

Kamis, 29 September 2022 - 15:38 WIB

OKINO C100, Tiny Vape With O-Tape Coil Technology

The consumption of e-cigarettes in Indonesia continues to increase. The Indonesian Personal Vaporizer Association (APVI) estimates that there are currently 2.2 million e-cigarette (vape) users.…

EH Free Swinging Hinges

Kamis, 29 September 2022 - 12:00 WIB

Southco Introduces Free-Swinging Hinges in New Materials to Meet Demanding, Heavy-Duty Applications

Southco Asia Ltd., a subsidiary of Southco Inc., a leading global provider of engineered access solutions such as locks, latches, captive fasteners, electronic access solutions and hinges/ positioning…

President Jokowi distributes direct cash assistance in South Buton regency, Southeast Sulawesi province, Tuesday (09/27). (Photo by: BPMI Presidential Secretariat/Laily Rachev)

Rabu, 28 September 2022 - 21:50 WIB

President Jokowi Distributes Assistances in South Buton

President Joko “Jokowi” Widodo Tuesday (09/27) distributed direct cash assistance (BLT) for fuel for beneficiaries of Family Hope Program (PKH) at Batauga post office, South Buton regency,…

President Jokowi at the inspection at PT Wika Bitumen, Buton regency, Southeast Sulawesi province, Tuesday (09/27). (Photo by: BPMI Presidential Secretariat/Laily Rachev)

Rabu, 28 September 2022 - 19:00 WIB

President Jokowi Pushes for Revival of Asphalt Producing Industries in Buton

President Joko “Jokowi” Widodo Tuesday (09/27) expressed hope to Buton regency, Southeast Sulawesi province to maximize its potential so it can re-emerge as an asphalt-manufacturing industrial…


Rabu, 28 September 2022 - 17:00 WIB

KRAIBURG TPE to campaign in Düsseldorf: The focus is on sustainable products and discussion

To ensure that customers of KRAIBURG TPE always achieve the best result, individual materials solutions are developed for many requested applications. The result: Right in time for the 2022…