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)