West Texas Crude Oil Contract Delivered in Aug. Trading on the NYMEX rose $2.81, or 2.7 percent, at $108.57 a barrel. North Sea Brent crude futures were up $2.71, or 2.5 percent, at $111.74 a barrel.
Oil prices were driven by tight oil conditions. The excess oil production of Saudi Arabia and the United Arab Emirates is dwindling. As both countries are nearing full oil production potential This makes it less likely to increase production capacity.
In addition, Libya and Ecuador are facing political unrest. which is a factor affecting oil production
Investors will keep an eye on US President Joe Biden’s visit to Saudi Arabia in the middle of this month.
President Biden said The goal of his trip was not to pressure Saudi Arabia to increase oil production alone. But countries around the Persian Gulf should increase oil production as well. All countries should be aware that doing so will benefit them.
