The price of oil on the UK’s Brent Oil index reached a 5-month high on Monday as supply output cuts continue to push the price of oil higher, according to reports.
Saudi Arabia’s oil diplomacy undertaken since the onset of the pandemic and a price war with Russia has been enormously successful. The Kingdom led efforts to unite producers in the OPEC+ group to collectively slash production, and has worked to ensure participants are sticking to their pledges to cut. The result has been a significant increase in the price of crude and temporarily diminished earnings for Saudi Aramco with output at a fraction of its maximum capacity.
Brent was up +1.95% at $46.04 per barrel as of 10:45am EDT.
Meanwhile, Saudi Arabia’s energy minister Prince Abdulaziz bin Salman Al-Saud announced the discovery of two new oil and gas fields in the northern regions, according to Reuters.
The new Abraq al-Toloul oil field, which lies to the south east of the northern city of Arar, flows with a daily rate of 3,189 barrels per day (bpd) of Arab light crude oil, along with 3.5 million cubic feet of natural gas, according to the Reuters report. Hadabat al Hajara gas field in al-Jof region has a daily production rate of 16 million cubic feets of natural gas, along with 1944 bpd of oil condensate, according to the minister.
