Oil prices surge as Saudis vow to cut exports

Oil prices climbed over 3-percent on Tuesday after major crude producer Saudi Arabia pledged to cap its exports to help ease the global oversupply. (Pixabay Photo, CC0)

NEW YORK, July 26 — Oil prices climbed over 3-percent on Tuesday after major crude producer Saudi Arabia pledged to cap its exports to help ease the global oversupply.

Saudi Energy Minister Khalid al-Falih said on Monday that the country would limit crude oil exports at 6.6 million barrels per day (bpd) in August, almost 1 million bpd below levels a year ago, according to media reports.

The minister made the pledge during a meeting between OPEC (Organization of the Petroleum Exporting Countries) and non-OPEC countries in Russia staring Monday. Major oil producers were expected to discuss compliance of agreed production cuts.

The West Texas Intermediate for September Delivery added 1.55 dollars to settle at 47.89 dollars a barrel on the New York Mercantile Exchange, while Brent crude for September delivery gained 1.62 dollars to close at 50.22 dollars a barrel on the London ICE Futures Exchange.