Oil prices dropped for a second session on Aug. 15 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. WTI 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 MMbbl/d if requested to do so by the Saudi Arabian government, Chief Executive Amin Nasser told reporters on Aug. 14.
"We are confident of our ability to ramp up to 12 MMbbl/d 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 Aug. 15 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 Aug. 12 that U.S. oil rig count rose by three 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.
2022-09-09 - EOG Resources forecast overall U.S. oil output to increase by between 700,000 bbl/d and 800,000 bbl/d this year at the Barclays CEO Energy and Power conference on Sept. 8.
2022-07-18 - After U.S. President Joe Biden visited Saudi Arabia on July 15, he did not receive clear assurance on an increase in oil production, but major oil producers are likely to boost supplies following the visit.
2022-07-18 - In the wake of U.S. President Biden's recent visit to Saudi Arabia, Saudi Aramco answered some of the world's top questions about the country's future oil production.
2022-07-15 - “The decision to increase oil production is subject to several factors and considerations and does not depend on a U.S. request,” Abdulaziz Sager, chairman of the Riyadh-based Gulf Research Center, said.
2022-07-15 - U.S. President Joe Biden tours the Middle East to discuss wide-ranging issues from security and U.S. support of Israel as well as a two-state solution to clean energy issues in Saudi Arabia.