SINGAPORE (Reuters) – Oil price rose by more than one percent on Monday after the top exporter Saudi Arabia announced…
SINGAPORE (Reuters) – Oil price rose by more than one percent on Monday after the top exporter Saudi Arabia announced a decline in December supply, a measure likely to stop a market decline which has seen a decline of 20 percent since the beginning of October .
A pump jacket is seen at sunset outside Scheibenhard near Strasbourg, France, October 6, 201
7. REUTERS / Christian Hartmann
Brent raw futures last month LCOc1, a benchmark for global oil prices, was $ 71.37 per barrel at 0531 GMT, up $ 1.19 or 1.7 percent, from their last closing.
US. The key terms for the West Texas Intermediate (WTI) were $ 60.87 per barrel, up 68 cents, or 1.1 percent.
Saudi Arabia plans to reduce oil supply to world markets by 0.5 million barrels a day in December, Energy Minister said on Sunday, as OPEC power faces uncertain prospects for other producers to agree on a coordinated production decline.
Khalid al-Falih told reporters that Saudi Arabia’s customer nominations would fall by 500,000 bpd in December compared to November due to the season’s lower demand. The clip represents a decrease in global oil supply of about 0.5 percent.
Saudi Arabia is the de facto leader of the Organization of Petroleum Exporting Countries (OPEC).
Peter Kiernan, senior energy technician at the Economist Intelligence Unit in Singapore, said OPEC was “focusing on mitigating disadvantages of risks” after the crude price fell by about 20 percent over a month after a pace of supply, especially from the three largest Manufacturers United the states, Russia and Saudi Arabia.
“Saudi Arabia has gone ahead of the oil market bearers, proactively announcing that they will reduce exports,” said Stephen Innes, Asia-Pacific Trade Manager at Oanda Singapore’s futures broker.
A major concern for Saudi Arabia and other traditional producers from the Middle East-dominated OPEC is the rise in US production.
US. energy companies last week added 12 oil platforms this week to November 9, looking for new reserves, resulting in the total bill 886, the highest level since March 2015, Baker Hughes Energy Service Company said on Friday.
The bill shows the US raw product C-OUT-T-EIA, which already has a record 11.6 million bpd, will increase further.
“One thing clearly clear, OPEC is in favor of a slate shock, because US crude production increased to 11.6 million barrels a day and will cross the 12 million threshold next year,” says Innes.
Henning Reporting Gloystein; Editing Richard Pullin
Our Standards: Thomson Reuters Trust Principles.