Bob Yawger, director of futures at Mizuho Securities USA Inc., also warned that the explosion “is a big thing” that could fuel a further price gains amid a tighter supply outlook.
Additionally, Saudi Arabia projects oil revenue to jump about 80% by 2023 and expects its first budget surplus in a decade. Officials calculate rising prices and expanded output will raise income from oil sales to 801.4 riyals, or $214 billion, from 440 billion riyals this year.
The oil market is set for its fourth monthly gain as the Organization of Petroleum Exporting Countries and other foreign suppliers, including Russia, reduce output and promise to maintain their cuts through the end of 2018. Meanwhile, in the U.S., the rise in rig counts has slowed, holding at around 747 with no rigs added last week.
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