Futures fell 0.3% in New York after climbing 2.5 percent in the previous two sessions. Drillers boosted the rig count by two to 751, a three-month high, according to Baker Hughes data on Friday. OPEC-led output curbs may end earlier than scheduled if the market re-balances by June, Kuwait’s then-oil minister said Sunday. Oil is heading for a second yearly gain as the Organization of Petroleum Exporting Countries and its allies including Russia extend supply cuts through the end of 2018. The extension includes an agreement to review the cuts in June, raising questions of how OPEC will eventually phase out the reductions. Shale explorers have signaled they’re gearing up for a drilling surge next year as hedging rose for an eighth week to a record. Click Read More below for additional information.
Oil futures traded higher early Tuesday in New York, buoyed by recent remarks from Saudi Arabian officials that reportedly expressed a renewed level of comfort with higher prices in light of renewed U.S. sanctions on Iran that could disrupt global output.
Saudi officials, according to a Bloomberg report citing people familiar with the discussions, said they don’t intend to drive prices higher but are growing more inured to the prospect of higher futures, which are likely to result from sanctions against Iran, set to take effect in less than two months. Previously, Saudi Arabia, the de facto leader of the Organization of the Petroleum Exporting Countries, orOPEC, had appeared to cow to complaints by President Donald Trump that crude prices were getting too rich.
more at source: https://www.marketwatch.com/story/oil-rallies-as-saudi-arabia-said-to-grow-comfortable-with-crude-above-80-a-barrel-2018-09-18