Oil Extends Advance to $47 as Saudis Pledge Deep Export Cuts

Futures in New York added as much as 1.6 percent after rising 1.3 percent Monday. Saudi Arabia will cap shipments at 6.6 million barrels a day in August, 1 million lower than a year earlier, said Energy and Industry Minister Khalid Al-Falih. In the U.S., Halliburton Co. and Anadarko Petroleum Corp. signaled that the investment in shale fields may finally be succumbing to the oil price slump.

“Yesterday’s Saudi decision to cut exports still lingers in the market,” said Bjarne Schieldrop, chief analyst for commodities at SEB Markets. The headlines that the U.S. shale oil boom is easing are also driving futures higher, he said.

West Texas Intermediate for September delivery gained as much as 73 cents to $47.07 a barrel on the New York Mercantile Exchange as of 7:11 a.m. local time. Total volume traded was about 4 percent below the 100-day average. Prices rose 57 cents to $46.34 on Monday.

Brent for September settlement climbed as much as 79 cents, or 1.6 percent, to $49.39 a barrel on the London-based ICE Futures Europe exchange. Prices rose 54 cents to $48.60 on Monday. The global benchmark crude traded at a premium of $2.29 to WTI.
more at:  https://www.bloomberg.com/news/articles/2017-07-24/oil-holds-advance-above-46-as-saudis-pledge-deep-export-cuts