• 2 days Retail On Pace For Most Bankruptcies And Store Closures Ever In One Year: BDO
  • 10 minutes America Could Go Fully Electric Right Now
  • 4 days Majors Oil COs diversify into Renewables ? What synergies forget have with Solar Panels and Wind Tirbines ? None !
  • 1 hour Clean Energy Is Canceling Gas Plants
  • 11 hours GAME CHANGER: MIT Startup Commonwealth Fusion says Commercial Product by early 2030s ! THIS CHANGES EVERYTHING..
  • 33 mins Rethinking election outcomes for oil.
  • 1 hour The Leslie Stahl/60 Minutes Interview with President Trump
  • 1 day America's Frontline Doctors - Safely Start Living Again!
  • 10 hours OP article : "Trump blasts Biden Fracking Plan . . . "
  • 4 mins Australia’s Commodities Heartland Set for Major Hydrogen Plant
  • 2 hours Video Evidence that the CCP controls Joe Biden
  • 13 hours Biden denies fracking ban
  • 2 days Is the coal industry on the way out?
  • 2 days "COVID Kills Another Oil Rally" by Tom Kool 10/16/2020
  • 2 days Conoco Pledges ‘Net-Zero’ Emissions in Break With U.S. Rivals
Oil Prices Rebound On Small Crude Draw

Oil Prices Rebound On Small Crude Draw

Oil prices rebounded today after…

Could This Become The Next Big Shale Takeover?

Could This Become The Next Big Shale Takeover?

ConocoPhillips is reportedly in talks…

Tsvetana Paraskova

Tsvetana Paraskova

Tsvetana is a writer for Oilprice.com with over a decade of experience writing for news outlets such as iNVEZZ and SeeNews. 

More Info

Premium Content

Oil Jumps After Saudi Arabia, UAE And Kuwait Pledge Deeper Cuts

Oil prices rose early on Tuesday after OPEC's Middle East heavyweights pledged additional cuts, instilling hopes in the market that further production reductions could help accelerate the drawdown of the enormous oil oversupply.

As of 10.38 a.m. EDT on Tuesday, WTI Crude was surging 5.05 percent to $25.36, and Brent Crude was up 1.62 percent on the day at $30.12.

On Monday, the world's top oil exporter and OPEC leader, Saudi Arabia, said it would cut oil production by an additional 1 million barrels per day (bpd) in June on top of its promised cuts as part of the OPEC+ production cut deal.

Under the OPEC+ deal in effect from May 1, Saudi Arabia has pledged to cut its oil production to 8.5 million bpd. With the additional voluntary reduction in June, the Saudis would produce 7.492 million bpd next month. This announcement yesterday managed to nudge oil prices higher only for a few hours before the market started fearing a second wave of COVID-19 infections with relaxed lockdowns, closing lower.

After the Saudis, the United Arab Emirates (UAE) also pledged to cut even more oil production in June, and so did Kuwait.

"We will need to see how individual compliance performs under the broader OPEC+ deal, because that would tell us if we are seeing real additional cuts from the OPEC+ group, or whether these recently announced cuts will just make up for poor performance from other producers," ING strategists Warren Patterson and Wenyu Yao said on Tuesday, commenting on the pledges from OPEC's top producers.

U.S. President Donald Trump also noted the rising oil prices and Saudi Arabia's cuts in a tweet on Tuesday:

"Crude Oil prices going up as Saudi Arabia cuts production levels. Our great Energy Companies, with millions of JOBS, are starting to look very good again. At the same time, gasoline prices at record lows (like a big Tax Cut). The BEST of all Worlds. 'Transition To Greatness.'"

This is the second time in two weeks that President Trump has tweeted how good higher oil prices are. Last Tuesday, he expressed satisfaction with the rising oil prices, tweeting, "Oil prices moving up nicely as demand begins again!" A tweet from the U.S. President praising higher oil prices would have been unthinkable just four months ago.  

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment
  • Maxander on May 12 2020 said:
    US President Donald Trump's oil price tweets may not impact much & will carry no weight going forward as production cut is going to be good real.

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News