Reuters — Oil prices held near multi-month lows on Wednesday (June 21) as investors discounted evidence of strong compliance by Organization of Petroleum-Exporting Countries and non-OPEC oil producers with a deal to cut a global output.
Global benchmark Brent was unchanged at $46.02 barrel at 0651 GMT after falling nearly 2 percent in the previous session to its lowest settlement since November.
United States crude futures for August were trading up 4 cents at $43.55, after spending much of the day slightly lower and falling more than 2 percent on Tuesday to the lowest since September.
Compliance with an agreement by the OPEC and other producers to cut output by 1.8 million barrels per day (bpd) for six months from January reached its highest in May since curbs were agreed last year.
OPEC’s largest producer, Saudi Arabia, meanwhile, announced a new crown prince.
Saudi Arabia’s King Salman made his son his successor on Wednesday, removing his nephew as crown prince and giving the 31-year old almost unprecedented powers as the world’s leading oil exporter implements transformational reforms.
A royal decree appointed Mohammed bin Salman crown prince and deputy prime minister. He retains defense, oil and other portfolios.
Although Mohammed bin Salman’s promotion was expected among close circles, it came as a surprise at a time the kingdom is facing heightened tensions with Qatar and Iran and is locked in a war in Yemen.