Oil rose around 1% yesterday, after leading Opec producer Saudi Arabia pledged to cut exports in August to help reduce the global crude glut, and Halliburton Co’s executive chairman said the US shale drilling boom would probably ease next year.
Saudi Energy Minister Khalid al-Falih said his country would limit crude oil exports at 6.6mn bpd in August, almost 1mn bpd below levels a year ago.
The Russian Energy Minister Alexander Novak also told reporters that an additional 200,000 bpd of oil could be removed from the market if compliance with a global deal to cut output was 100 %.
Brent crude futures were up 46 cents or 0.97% to $48.52 a barrel by 11.55am (1555 GMT). US
West Texas Intermediate (WTI) crude futures were up 49 cents or 1.1% to $46.26 a barrel.
The Saudi and Russian energy ministers were in St Petersburg for a gathering of the Organisation of the Petroleum Exporting Countries and some other producers.
Ministers discussed their agreement to cut production 1.8mn bpd from January 2017 through March 2018.
Al-Falih said Opec and non-Opec partners were committed to cutting output longer if necessary but would demand that any non-compliant nations stick to the agreement.
There was no discussion of deeper output cuts, and Opec secretary-general Mohammad Barkindo said Nigeria has no intention of going beyond its production target of 1.8mn bpd.
Libya’s oil production has reached 1.069mn bpd, a Libyan oil source told Reuters, which is above a high reached earlier this month.
Opec members Nigeria and Libya have been exempt from the output cuts, and market watchers remain concerned about their production.
In the US, rig counts were up to 764 in latest week from 371 rigs a year ago.
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