MTECHTIPS;-Oil prices rally to session highs after Saudis pledge to

MTECHTIPS;-Oil prices rally to session highs after Saudis pledge to cut exports

MTECHTIPS-Oil prices rallied to the highest levels of the session in North American trade on Monday, after Saudi Arabia pledged to make deep cuts to its crude exports in August in an effort to ease a global supply glut. Saudi Arabia, OPEC’s largest producer, will limit exports to 6.6 million barrels a day in August, energy minister Khalid Al-Falih said after a meeting with fellow producers who gathered to discuss compliance with the cartel’s deal to cut production. The oil ministers gathering in St. Peters burg, Russia, made no major changes to their wider supply agreement, stopping short of capping output of Libya and Nigeria. However, multiple reports said Nigeria committed to voluntarily taking part in cuts if it reaches a production level of 1.8 million barrels a day. Libya, which has increased output above 1 million barrels a day, is not planning to limit production until reaching its target of pumping 1.25 million a day. The two countries had been exempted from the pact among major oil producers to allow their production to recover from years of unrest. In May, OPEC and some non-OPEC producers, such as Russia, extended an agreement to slash 1.8 million barrels per day in supply until March 2018. Energy ministers at the meeting said the output-cap agreement could be extended beyond next year’s first quarter if needed, according to multiple reports

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