Oil prices ease as Aramco says ready to boost crude output

  • In Business
  • 2022-08-15 01:05:19Z
  • By Reuters

By Florence Tan

SINGAPORE (Reuters) - Oil prices dropped for a second session on Monday after the head of the world's top exporter, Saudi Aramco, said it is ready to ramp up output while production at several offshore U.S. Gulf of Mexico platforms is resuming after a brief outage last week.

Brent crude futures fell 27 cents, or 0.3%, to $97.88 a barrel by 0034 GMT after settling 1.5% lower on Friday. U.S. West Texas Intermediate crude was at $91.87 a barrel, down 22 cents, or 0.2%, following a 2.4% drop in the previous session.

Saudi Aramco stands ready to raise crude oil output to its maximum capacity of 12 million barrels per day (bpd) if requested to do so by the Saudi Arabian government, Chief Executive Amin Nasser told reporters on Sunday.

"We are confident of our ability to ramp up to 12 million bpd any time there is a need or a call from the government or from the ministry of energy to increase our production," Nasser said. He added that China's easing of COVID-19 restrictions and a pickup in the aviation industry could add to demand.

Investors are looking ahead to China economic data later on Monday for demand cues at the world's top crude oil importer.

Oil prices rebounded more than 3% last week after a damaged oil pipeline component disrupted output at several offshore Gulf of Mexico platforms.

Producers had moved to reactivate some of the halted production after repairs were completed late Friday, a Louisiana official said.

Energy services firm Baker Hughes Co reported on Friday that U.S. oil rig count rose by 3 to 601 last week. The rig count, an early indicator of future output, has been slow to grow with oil production only seen recovering from pandemic-related cuts next year.

Global oil markets remained supported by tight supplies in the run-up to EU sanctions on Russian crude oil and refined product supplies this winter.

(Reporting by Florence Tan; Editing by Kenneth Maxwell)


More Related News

TSX falls by most in 3 months, C$ slides as oil rout weighs
TSX falls by most in 3 months, C$ slides as oil rout weighs

Canada's resource-heavy main stock index posted its biggest decline in more than three months on Friday and the Canadian dollar extended its recent decline...

Inflation, unrest challenge Bangladesh
Inflation, unrest challenge Bangladesh's 'miracle economy'
  • World
  • 2022-09-23 04:04:02Z

Standing in line to try to buy food, Rekha Begum is distraught. Like many others in Bangladesh, she is struggling to find affordable daily essentials like...

Oil prices rise as Iran deal stalls, Russian supply amid conflict
Oil prices rise as Iran deal stalls, Russian supply amid conflict

Oil prices rose in early Asian trade on Friday on the prospect that a stalled Iran nuclear agreement and Moscow's new mobilization campaign in its invasion...

Putin isn
Putin isn't the biggest threat to gas prices. It's this country instead, according to a chief strategist

Marko Papic, the ClockTower Group's chief strategist, argues the real risk to oil and gasoline prices comes from Iraq amid rising tensions in the Middle East...

Leave a Comment

Your email address will not be published. Required fields are marked with *

Cancel reply


Top News: Business