Texas oil opens with a rise of 0.53%, due to further cuts in Saudi Arabia

The price of Texas intermediate oil (WTI) opened Monday with a rise of 0.53% to $ 24.87 a barrel, an increase motivated by the announcement by Saudi Arabia, which promised to make a "voluntary" reduction and additional in its crude oil production of one million barrels per day (bpd) from June and which will be added to the cut agreed with the OPEC + countries on April 12.

At 9.15 New York local time (13.15 GMT), future WTI contracts for June delivery totaled $ 0.13 from the previous session on Friday, when Texas advanced 5%.

The barrel of reference in the United States rose after the statements of an official of the Ministry of Energy of Saudi Arabia to the official agency SPA with which he promised to support the international crude oil markets, hit by low demand as a result of the health crisis of COVID-19.

"The kingdom's production for June, after the dictated and voluntary cuts, will be 7,492 million barrels a day," said the Saudi authorities, who hope that this decision "encourages" both the rest of the member countries of the Organization of Petroleum Exporting Countries and their partners (OPEC +) as well as other producing powers to comply with their cuts or to voluntarily expand them.

In pre-opening operations and prior to the announcement by Saudi Arabia, the Texan barrel was in negative territory due to the pessimism after the COVID-19 outbreaks in countries such as South Korea and the effect this could have on demand if it occurs in other nations, especially those that have already slowly reopened their economies.

The price of US oil rose 25% last week in one of its best weeks ever.


Source link