RIYADH: Oil prices firmed on Thursday, finding continued support from a decision by the Organization of the Petroleum Exporting Countries and its allies last week to cut supplies, as the International Energy Agency warned that those cuts may push the global economy into recession.
Brent crude futures rose 60 cents, or 0.65 percent, to $93.05 a barrel by 12.20 p.m Saudi time.
US West Texas Intermediate crude was up 48 cents, or 0.55 percent, at $87.75 a barrel.
Saudi Arabia rejects statements critical of OPEC+ oil cut
Saudi Arabia rejected as “not based on facts” statements criticizing the Kingdom after the Organization of Petroleum Exporting Countries and its allies, known as OPEC+, last week decided to cut its oil production target despite US objections.
The OPEC+ decision was unanimous and took into account the balance of supply and demand and was aimed at curbing market volatility, the Saudi foreign ministry said in a statement on Thursday.
Meanwhile, a report published in the Associated Press noted that the US had urged Saudi Arabia to postpone a decision by OPEC+ to cut oil output by a month, as the American mid-term elections are scheduled to take place on Nov. 8.
“The government of the Kingdom clarified through its continuous consultation with the US administration that all economic analyzes indicate that postponing the OPEC+ decision for a month, according to what has been suggested, would have had negative economic consequences,” the Saudi foreign ministry said in the statement.
UAE’s ADNOC Drilling secures $980 million contract to hire offshore rigs
Abu Dhabi National Oil Co. awarded a contract worth $980 million to ADNOC Drilling to hire two jack-up offshore rigs, the company said on Thursday.
The award will support the expansion of ADNOC’s production capacity as it responds to the growing global demand for lower carbon-intensity oil and gas, the company added.
Gambian fuel firms vow to suspend operations due to dollar shortage
Gambian oil marketing companies on Wednesday said they would be forced to halt operations by Oct. 17 due to a shortage of dollars on the market to buy fuel, leaving them unable to resupply fuel stations.
They announced the move in a joint statement that blamed the government pricing structure and called on the authorities to act.
Strikes to continue at four TotalEnergies refineries, storage facility
The strikes affecting four refineries of French oil major TotalEnergies will continue Thursday, a CGT union representative told Reuters, adding they would also affect one storage site while another charging point for petrol shipments was now open again.
A representative of the union’s branch at Esso France had said on Wednesday the walkouts there would also continue.
(With input from Reuters)
