Saudi Arabian oil minister Khalid al-Falih announced on Saturday that it would continue to restrict exports in support of OPEC’s production cuts, sending oil prices higher despite production increases in the United States. The minister noted that Saudi Arabian exports would average below 7 million barrels per day of exports, and that the country would produce amounts of crude oil well below OPEC’s caps. He also expressed his hopes that the production cuts would end in 2019 and that by then they will have a better idea of how to balance the market.
Also supporting oil prices on Monday were political tensions that caused the closure of Libya’s El Feel oilfield and a powerful earthquake in Papua New Guinea which caused suspension of operations in some of the country’s oil and gas fields.
U.S. WTI was up 21 cents per barrel to $63.76 as of 3:10 p.m. HK/SIN, and Brent crude futures were up 10 cents per barrel to $67.41.