Oil jumps 1% on news Saudi Arabia may cut output
The plan to cut production has bolstered prices, which have been taking strain from a rapid increase in global supply and the threat of a slowdown in demand
London — Oil rose by more than 1% on Monday, set for its largest one-day increase in a month after Saudi Arabia said Opec and its partners believed demand was softening enough to warrant an output cut of 1-million barrels a day. Saudi Arabia, the world’s largest oil exporter, said on Sunday it would cut its shipments by half a million barrels a day in December due to seasonal lower demand. Brent crude futures rose 92c on the day to $71.10 a barrel by 9.24am GMT, while US crude futures rose 50c to $60.69 a barrel. Saudi energy minister Khalid al-Falih said on Monday Opec and its partners agreed that technical analysis showed a need to cut oil supply next year by around one-million barrels a day from October levels to avoid an unwelcome build-up of unused crude. “The balances for 2019 do show, especially in the first half of the year, that there will be significant global oversupply,” Petromatrix analyst Olivier Jakob said. Opec and the International Energy Agency (IEA) release their ...
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