Oil prices fall as Aramco says it is ready to increase crude production

FILE PHOTO – A pump jack is seen surrounded by steam during sunset at a PetroChina oilfield in Karamay, Xinjiang Uigur Autonomous Region January 5, 2011. REUTERS/Stringer

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  • Saudi Aramco ready to maximize production to 12m bpd – CEO
  • U.S. Gulf of Mexico production resumes after repairs

SINGAPORE, Aug 15 (Reuters) – Oil prices fell for a second session on Monday after the chief of the world’s top exporter Saudi Aramco said it was ready to increase production while production at several oil platforms U.S. offshore Gulf of Mexico forms resume after a brief outage last week.

Brent crude futures fell 27 cents, or 0.3%, to $97.88 a barrel as of 0034 GMT after falling 1.5% on Friday. U.S. West Texas Intermediate crude was at $91.87 a barrel, down 22 cents, or 0.2%, after falling 2.4% in the previous session.

Saudi Aramco is ready to increase crude oil production to its maximum capacity of 12 million barrels per day (bpd) if requested by the Saudi government, chief executive Amin Nasser told reporters on Sunday.

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“We are confident in our ability to increase our production up to 12 million bpd whenever there is a need or a call from the government or the energy ministry to increase our production,” Nasser said. He added that China’s easing of COVID-19 restrictions and a recovery in the aviation industry could boost demand.

Investors are eagerly awaiting economic data from China later Monday for hints of demand from the world’s top crude oil importer.

Oil prices rebounded more than 3% last week after a damaged pipeline component disrupted production at several offshore platforms in the Gulf of Mexico.

Producers had decided to reactivate some of the suspended production after repairs were completed Friday night, a Louisiana official said. Read more

Energy services company Baker Hughes Co (BKR.O) reported on Friday that the number of U.S. oil rigs rose by 3 to 601 over the past week. The rig count, an early indicator of future output, has been slow to grow, with oil production only recovering from pandemic-related cuts next year.

Global oil markets remained supported by tight supplies ahead of EU sanctions on Russian supplies of crude oil and refined products this winter. Read more

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Reporting by Florence Tan; Editing by Kenneth Maxwell

Our standards: The Thomson Reuters Trust Principles.

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