Oil Prices Increase on Saudi Declaration

Oil prices rose to a two-month high after top exporter Saudi Arabia said it would work with its OPEC colleagues on a “suitable rise” in production, a stance seen as too cautious to fill output gaps. The statement is the first public declaration on the issue by Saudi Arabia since the kingdom pledged on July 3 to unilaterally boost output by 500,000 barrels a day if prices didn’t fall back to the level of $25 a barrel. Oil prices are near 10-year highs due to recovering demand in Asia, a 24-year low in crude oil stocks in the United States and worries about refinery capacity ahead of winter. Analysts were quick to note that the Saudis had ruffled feathers in the Organization of Petroleum Exporting Countries by its July stance and were moving cautiously ahead of OPEC’s next meeting on Sept. 10. Crude oil for October delivery closed 58 cents higher at $33.32 a barrel on the New York Mercantile Exchange.