CRUDE GAINS IN ASIA Crude gains in Asia on Tuesday ahead of industry estimates of U.S. crude and refined product stocks and with sentiment on output curbs supporting markets.
On the New York Mercantile Exchange crude futures for August delivery rose 0.60% to settle at $46.62 a barrel, while on London’s Intercontinental Exchange, Brent added 0.39% to $48.85 a barrel.
Overnight, crude futures settled higher on Monday, after Opec producer Saudi Arabia pledged to lower crude exports in August while Nigeria agreed to curb production.
At a gathering of ministers from major crude-producing nations in St. Petersburg, Russia on Monday, Saudi Energy Minister Khalid al-Falih said his country would limit crude oil exports at 6.6 million barrels per day (bpd) in August, almost 1 million bpd below levels a year ago.
The Saudi energy minster added that the production-cut agreement could be extended beyond March if necessary but any further extension would rely on non-compliant nations adhering to the agreement.
Also adding to positive sentiment on oil, were reports suggesting that Nigeria committed to take part in production if it reaches a production level of 1.8m bpd.
Nigeria output reached 1.7 million bpd in June, according to independent sources cited by OPEC in a monthly report.
Some analysts praised Nigeria decision to agree to cap production but expressed concerns about Opec’s compliance rate – with the deal to curb production – which fell to 78% June, the IEA said in its report earlier this month.
In May, Opec and non-Opec members agreed to extend production cuts of 1.8m bpd for a period of nine months until March but rising production from the U.S., Nigeria and Libya has undermined the cartel’s efforts to curb excess supply.
Click here for reuse options!