Prince Abdulaziz bin Salman, Saudi Arabia’s new energy minister and a longtime member of the Saudi delegation to the Organization of Petroleum Exporting Countries, said the kingdom’s policy will not change and a global agreement to cut oil production by 1.2 million barrels a day will be maintained.
Brent rose 7 cents to $ 62.66 a barrel by 0840 GMT, while futures of the US West Texas Intermediate rose 15 cents, or 0.6%, to $ 58.17 a barrel.
Since July 31, US crude oil rose to its highest level as Brent hit its highest level since August 1.
He added that the so-called OPEC + alliance, made up of OPEC and non-OPEC producers including Russia, would be in the long run.
“Clearly, the Kingdom wants higher oil prices … Prince Abdulaziz made it clear that ‘no radical change’ in Saudi politics is coming.”
“It will be interesting to see if we get any objection from him if the producer group in general and Saudi Arabia in particular sees the need for deeper cuts in production.”
On Thursday, the OPEC + Joint Ministerial Monitoring Committee, which reports on the compliance of the cuts, will meet in Abu Dhabi.
There were concerns about adherence to the manufacturers in the deal after OPEC members Iraq and Nigeria, among others, exceeded their quota in August and Russia also did not fully respect it.
Jeffrey Halley, senior market analyst at OANDA said that “Markets will have to see concrete progress on the production front, even as the world economy slows, to keep profits.”
If oil markets close higher on Tuesday, it will be the longest gain since late July, but backlogs remain due to US and Chinese trade tensions.
A preliminary Reuters survey showed that in the United States unprocessed stocks were likely to fall for a fourth consecutive week last week.
Executives at the annual Asia Pacific Petroleum Conference said Monday that they expect oil prices this year to be crushed by the uncertainties surrounding the global economy, the US-China trade war and rising US supplies.