MTECHTIPS:-Oil gains after Saudi vows to cap crude exports nextmonth
MTECHTIPS:-Oil gains after Saudi vows to cap crude exports next month
MTECHTIPS-Oil rose on Monday, erasing early losses after leading OPEC producer Saudi Arabia pledged to cut its exports to help speed the re balancing of global supply and demand. Saudi Energy Minister Khalid al-Falih said his country would limit crude oil exports at 6.6 million barrels per day (bpd) in August, almost 1 million bpd below levels a year ago. Brent September crude futures (LCOc1) were up 44 cents on the day at $48.50 a barrel by 1313 GMT, having risen from a session low of $47.68. NYMEX crude for September delivery (CLc1) rose 39 cents to $46.16. “This is the Saudis saying they view the current market conditions as too weak and they are actually delivering,” said SEB commodity strategist Bjarne Rothschild. “It shows real additional willingness on their part to do something, which is hugely important, rather than sitting back and letting OPEC motions roll forward. They’re acting unilaterally and adding pressure.” Falih also said the Organization of the Petroleum Exporting Countries and non-OPEC partners were committed to extending their existing 1.8 million bpd supply reduction deal beyond next March if necessary but would demand that any non-compliant nations stick to the agreement.
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