As markets await major meetings of major oil organizations, economic data from the United States showed a decline in drilling activity, leading to higher oil prices at the beginning of Monday’s trading session.
US crude futures rose 0.45 percent, or 30 cents, to trade at $68.07 a barrel. Brent crude futures rose 0.73 percent, or 56 cents, to trade at $77.39 a barrel.
According to a report by energy services company Baker Hughes, two US oil rigs have been suspended during the past week. The total number of active drilling rigs reached 860 active drillers last May.
In major meetings, oil markets and market participants are looking forward to the upcoming meeting on global production between US Energy Secretary Rick Perry and Saudi Energy Minister Khalid al-Falih in Washington on Monday. This comes while the White House administration is pushing major oil producers to keep production high, and Washington is renewing sanctions on Iran’s crude oil exports. Perry will also meet Russian Energy Minister Alexander Novak on Thursday in Moscow.
The Joint Technical Committee of OPEC is composed of representatives of OPEC oil exporting countries as well as representatives of major non-OPEC countries, led by Russia. They are expected to have a meeting on September 17, which aims to consider proposals for the distribution of the agreed increase in production by one million barrels per day.
The Organization of Petroleum Exporting Countries, Russia and other non-OPEC members agreed in June to return to 100% commitment to oil production cuts that began in January 2017, after underproduction of various countries has increased compliance to more than 160%.
Rising oil prices have begun to pose a threat to President Donald Trump and his Republican party, especially before congressional elections began on Nov. 6. Global oil prices have risen to more than $76 a barrel in recent weeks due to fears of sanctions on Iranian oil exports, which will be renewed by Washington on November 4. Trump withdrew last May from the nuclear deal with Iran.
In a separate context, Saudi Arabia is seeking a civilian nuclear deal with the United States that could allow the kingdom to enrich uranium and reprocess plutonium.
Be the first to comment