Crude Oil Futures Take Off to Two-year Highs on Saudi Corruption Crackdown and U.S. Tightening Market
Nov, 06th 17:40
U.S. crude oil futures soared to the strongest level in more than two years on Monday in the wake of a crackdown on corruption in Saudi Arabia and signs that markets continued to tighten.
West Texas Intermediate crude prices for December delivery jumped drastically nearly 2.6 percent to trade at $57.08 a barrel – the highest level since July 2015. The rally came on news that Saudi Crown Prince Mohammed bin Salman tightened his grip after royals, ministers and investors, including prominent billionaire Alwaleed bin Talal and the powerful head of the National Guard, Prince Miteb bin Abdullah were arrested by the country’s new anti-corruption commission over the weekend.
Additionally, Saudi Arabia, Russia, Kazakhstan and Uzbekistan were reported to meet over the weekend and express their willingness to maintain restrictions on oil production in order to diminish a glut in supply and prop up prices.
Other factors have edged the oil price upwards. General Electric Co’s Baker Hughes energy services firm on Friday reported that U.S. energy companies cut eight oil rigs to 729 last week. This is the biggest weekly reduction since May 2016. Rig count is an early indicator of future output.
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