MTECHTIPS:-Oil prices steady as Saudi cuts September supplies

MTECHTIPS:-Oil prices steady as Saudi cuts September supplies

MTECHTIPS-Oil prices steadied on Tuesday after news of lower crude supplies from Saudi Arabia offset higher output from other large producers including the United States. Saudi state oil company Aramco will cut allocations to its customers worldwide in September by at least 520,000 barrels per day (bpd), sources familiar with the matter told Reuters on Tuesday. The cut is in line with the kingdom’s commitments in a supply reduction pact led by the Organization of the Petroleum Exporting Countries designed to bolster oil prices that have been depressed for more than three years by a global glut. But oil production remains high in many parts of the world and prices are still around half the level seen in 2011-2014. Benchmark Brent crude (LCOc1) was up 20 cents at $52.57 a barrel by 1020 GMT. U.S. light crude (CLc1) was 20 cents higher at $49.59. “Support is coming from a stabilizing U.S. rig count, falling U.S. inventories and the Saudi cut in exports,” Ole Hansen, head of commodity strategy at Denmark’s Saxo Bank, told the Reuters Global Oil Forum. “But against this we still have robust production growth from the United States, Libya and Nigeria.”
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