2018.08.1406:35:00UTC+00Oil Rises On Saudi Output Cut

Oil prices inched higher on Tuesday after a report from OPEC confirmed that top exporter Saudi Arabia had cut crude output by 200,000 barrels per day (bpd) to 10.29 million bpd in July.

Global oil production in July rose by 680,000 bpd, while total production of OPEC countries rose by 41,000 bpd to 32.32 million bpd despite recent cuts in supply from Saudi Arabia.

Significantly, the cut comes amid expected export declines from Iran when the U.S. reimposes a second phase of sanctions in November.

The OPEC report pegged world oil demand at 1.43 million bpd in 2019, down from 1.64 million bpd in 2018.

Benchmark Brent crude futures were up 61 cents or 0.84 percent at $73.22 a barrel while U.S. light crude futures were up 57 cents or 0.85 percent at $67.77 a barrel.