oilkOil rose on Monday on expectations that Saudi Arabia, the world’s largest oil exporter, will continue to support output cuts by OPEC and other producers to prop up prices under new energy minister Prince Abdulaziz bin Salman. Prices climbed for a fourth day and were also supported by comments from the United Arab Emirates’ energy minister that OPEC and its allies are committed to balancing the crude market.
Global benchmark Brent was up 53 cents, or 0.9 percent, at $62.07 a barrel by 0425 GMT, while US West Texas Intermediate was 57 cents, or 1 percent, higher at $57.09 a barrel.
Salman, a long-time member of the Saudi delegation to the Organization of the Petroleum Exporting Countries (OPEC), was named to the position on Sunday, replacing Khalid Al-Falih
“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,” said Stephen Innes, Asia Pacific market strategist at Axi Trader. Russia’s oil output in August exceeded its quota under the OPEC+ agreements.
Prices on Monday were also supported by a rise in oil imports in China in August, with shipments to the world’s biggest importer up 3 percent from July and nearly 10 percent higher in the first eight months of 2019 from a year earlier.
“With (refinery) maintenance season wrapping up, oil imports stayed buoyant. Attractive profit margins continue to favor higher imports; despite the industry burdened by higher products inventories,” ANZ Research said in a note.
In the US, drilling companies cut the number of operating oil rigs for a third week in a row last week.