Oil prices increased to a two week high on Monday as Saudi Arabia looked to keep output below Cap.
The oil prices have hit two weeks high on Monday. The prices of U.S. West Texas crude increased up to 3 percent from last week with the current price of $63.80 per barrel. On the other hand, London Brent crude ended $67.44 after a four percent increase from last week. The benchmarks hit their high since February 7.
The decision is supported by Saudi Arabia who said that they will continue to keep a check on exports with OPEC to cut global supplies.
The prices increased after Saudi Arabian oil minister Khalid al-Falih in a statement on Saturday said that the country’s oil production in January-March would be well below output caps, with exports averaging below 7 million barrels per day.
He also went on to say that Saudi Arabia hopes OPEC and its allies will be able to relax production curbs next year and create a permanent framework to stabilize oil markets after the current supply cut deal ends this year.
The United States energy companies have added one more oil rig last week. Highest since 2015, the total tally now counts to 799.
Tomomichi Akuta, senior economist at Mitsubishi at UFJ Research and Consulting in Tokyo said that The rise in equities made it easier to buy risk assets such as oil. But amid worries over U.S. crude production at near record highs, oil is struggling to make a move.
Earlier, a powerful earthquake of magnitude 7.5 hit the southern highlands province of Papua New Guinea on Monday. It disrupted communications of gas and oil operations.