Statement of the Ministry of Energy of Saudi Arabia positively affects the optimism of the world oil market
The statement of the Minister of Energy, Industry and Mineral Resources of Saudi Arabia, Khalid A. Al-Falih on limiting crude oil exports, positively affected the optimism of the world oil market - International benchmark Brent crude rose to $49 a barrel, WTI crude exceeded $47. During the press conference on the outcomes of the OPEC session, Saudi Energy Minister Khalid al-Falih said his country would limit crude oil exports at 6.6 million barrels per day (bpd) in August. He said that the parties to the agreement had agreed to extend production cuts if necessary. In 2016, in Vienna, OPEC countries, along with other producers, agreed to cut around 1.8 million barrels per day from their collective output. According to the OPEC Ministerial Monitoring Committee, the participating OPEC and Non-OPEC producing countries achieved a conformity level of 98% in the first six months of January to June 2017. In addition, to further stabilize the oil market, the committee recommended to extend the oil cut agreement beyond the March 2018 deadline. Saudi Energy Minister Khalid al-Falih said his country supported the extension of the agreement to reduce oil production for the second quarter of 2018.
