Oil Prices Rise Amid Projected Cuts

• Oil Prices Rise Amid Projected Cuts

Global oil prices rose on Monday as investors predicted that Saudi Arabia, the world’s largest oil exporter, will lower output in an effort to support oil prices.

The kingdom had promised to cut crude exports below 7 million barrels per day in the month of September following series of global events that impeded oil prices in August. Experts are now pricing in an additional reduction in Saudi crude supply this month.

Brent crude oil, against which Nigerian oil is measured, rose to $62.80 per barrel from the $57.21 recorded last week. While the U.S West Texas Intermediate (WTI) climbed from $52.88 per barrel attained last week to $58.12.

Prices were also aided by comments from Suhail al-Mazrouei, the energy minister of United Arab Emirates.

According to him, the UAE will continue to support OPEC production accord.

“The fear of slower (oil) demand is only going to happen if that tension is escalating and I am personally hopeful that is not the case,” Mazrouei told Reuters on Sunday.

Meanwhile, Saudi Arabia has appointed the son of Saudi King Salman, Mr. Salman, as the kingdom energy minister.

Mr. Salman replaced Khalid al-Falih on Sunday.

However, the kingdom official said there would be no change in OPEC policy despite the change in minister.

Stephen Innes, Asia Pacific market strategist at Axi Trader, said: “The change at the top doesn’t necessarily mean a shift in policy as much as it’s being viewed as a move to improve relations within OPEC and with non-OPEC producers in the wake of the latest Russian compliance fissures.”