Crude oil prices rose on Monday after a sudden drop in Saudi Arabia’ production in July, as well as a drop in the number of US oil rigs last week, which helped boost prices.
Crude oil futures soared to a session’s high of $69.01 a barrel after opening at $68.60 a barrel, while currently trading at 68.89.
Brent crude prices edged up 1.4 percent today to reach a high of $74.09 a barrel after opening at $73.19 a barrel.
Saudi Arabia announced production of 10.29 million barrels per day during July, with production falling by 200,000 bpd compared to its June output levels.
The decline in Saudi production rates came despite the Kingdom's pledge along with Russia in June to increase the supply of crude oil starting from July.
However, price hikes remain somewhat limited due to Saudi Arabia's announcement over the weekend that oil shipments through Bab al-Mandab Strait in the Red Sea have resumed after a temporary halt on July 25 due to attacks on two oil tankers.
The U.S. announced on Friday that the number of drilling rigs operating the
past week fell by two diggers, bringing the total number to 859 diggers,
marking the second decline in the number of rigs in the past three weeks.