Oil prices advances more than 1% after Saudi Arabia claimed to limit exports by August

Brent crude oil

Monday, the price of oil advances for approximately more than 1% after OPEC de-facto leader: Saudi Arabia assured to limit exports in August. Brent crude futures rose up about 1.1% or 54 cents and traded at $48.60 a barrel. The United States West Texas Intermediate on the other hand, advances up about 1.3% or 57 cents and traded at $46.34 per barrel.

In accordance to this, The Organization of Petroleum Exporting Countries’ de-facto leader: Saud Arabia has announced to cut their oil exports in August in order to reduce the global oil oversupply. In addition, Khalid al-Falih, Saudi Arabia’s Energy Minister claimed that Saudi would limit its crude oil exports by August at 6.6 million barrel per day, which is practically 1 million barrel a day below 2016.

In a gathering in St. Petersburg between OPEC and other oil producers, Khalid al-Fali along with Russian Energy Minister: Alexander Novak and other Energy Ministers discussed their previous agreement to cut oil output by 1.8 million barrels per day from January 2017 up to March of 2018.

On the other hand, David Lesar, Chief Executive of Halliburton Co.’s said that the United States shale drilling activity would probably ease by 2018. He also said that he expected a United States rig count above 1,000 by the end of 2017, however that about 800 to 900 rigs was more sustainable in the medium term. The United States rig counts, in the latest week were up to approximately 764, which is a boost from 371 rigs in 2016.

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