Investing.com - U.S. crude oil prices rose on Monday as lower Saudi Arabian production bolstered prices.
West Texas Crude oil futures surged 1.84% to $69.75 a barrel as of 11:09 AM ET (15:09 GMT). Meanwhile Brent crude futures, the benchmark for oil prices outside the U.S., increased 1.46% to $74.28.
Saudi Arabia only pumped about 10.29 million barrels per day (bpd) in July, down about 200,000 from a month earlier, Reuters reported.
The Organization of the Petroleum Exporting Countries, of which Saudi Arabia is the de facto leader, agreed in June to raise output at a nominal increase of 1 million bpd amid pressure from the U.S. to decrease prices. While OPEC members are expected to add around 700,000 barrels a day, non-OPEC oil suppliers led by Russia would add the rest.
Some relief came on Monday after Saudi Arabia said it had resumed oil shipments through the Red Sea shipping lane of Bab al-Mandeb. The shipments had been temporarily halted due to attacked on two oil tankers by Yemen’s Iran-aligned Houthi movement.
Meanwhile, the number of oil rigs used for drilling was cut for the second time in the past three weeks as drilling in the U.S. has slowed.
Two oil rigs were cut in the week of August 3, bringing the total count down to 859, Baker Hughes said on Friday.
In other energy trading, Gasoline RBOB Futures increased 0.63% at $2.0807 a gallon, while heating oil rose 1.43% to $2.1573 a gallon. Natural gas futures were down 0.14% to $2.849 per million British thermal units.