The significant growth in the company's profitability broadly reflects the prevailing strength in crude oil prices and the advantage of a significantly lower debt level. "USA waivers to our clients if they come is due to the failure of bluffers [Saudi and the other producers] and, if not given, will again push the prices higher", he said.
The analysts expect oil prices to remain range-bound throughout 2018 and in 2019, as lower Iranian supply and lower stocks will continue to be bullish factors, while trade tensions that could hurt oil demand and market sentiment, coupled with rising USA oil production would keep a lid on prices.
Saudi Arabia's tankers altered course after the kingdom last week took the extraordinary measure of temporarily halting oil shipments via the Bab el-Mandeb Strait, a key shipping lane for crude at the southern tip of the Red Sea.
"Recently, traders have been fearful about future supply given the impending sanctions on Iran, but they are happy to dump oil in light of the OPEC news", said Madden at CMC Markets UK.
The latest declines came as a Reuters survey of analysts forecast another jump in OPEC's output for July and Russian Federation said its oil production would hit a 30-year high above 11 million bpd this year.
West Texas Intermediate shot up $1.44 to $70.13 per barrel, while Brent climbed 83 cents to $75.12 per barrel.
A Reuters poll forecast stocks fell 2.8 million barrels.
September Brent crude futures fell 46 cents, or 0.6 percent, to $74.51 a barrel by 0356 GMT after rising almost 1 percent on Monday.
The price of oil fell from more than r $100 a barrel in 2014 to less than $30 a barrel in early 2016.More news: Tristan Thompson punched Draymond Green at LeBron James' ESPYs afterparty
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Yesterday, the commodity fell sharply after private data from the American Petroleum Institute showed a larger-than-expected build in USA crude stocks. This will also mean higher prices.
Futures in NY fell as much as 0.8 percent after a 2 percent decline Tuesday.
Russian Federation and the Organization of the Petroleum Exporting Countries boosted output in July, according to a Reuters production survey on Monday.
Oil held an advance near $70 a barrel as the threat of production disruptions from the United Kingdom to Saudi Arabia loomed over global supplies. Crude oil prices in the second quarter benefited from the sustained production cuts by Organization of the Petroleum Exporting Countries (OPEC) and non-OPEC allies and the continued uncertainty with respect to Iran's oil operations.
In other news, Yemen's Houthi group said that it would suspend attacks in the Red Sea in order to support peace efforts.
A Reuters survey showed that OPEC has increased production in July by 70,000 barrels per day to reach 32.64 million barrels per day; the highest level so far this year.
Here is a look at how share prices for two blue-chip stocks and two exchange traded funds reacted to this latest report.
"The market is facing different questions - Is global demand slowing due to weakening worldwide economic growth, will US production keep up its incredible pace, will output in Venezuela keep plummeting, what will USA sanctions do to Iranian production, and is OPEC really willing to raise output up to 1 mbpd!"