Oil prices are rising after Saudi Arabia promised to cut production by a million barrels at the OPEC+ meeting

Oil prices are rising after Saudi Arabia promised to cut production by a million barrels at the OPEC+ meeting

WTI surged nearly 5% at the start of trading

Oil prices are rising after Saudi Arabia promised to cut production by a million barrels at the OPEC+ meeting

West Texas Intermediate crude jumped nearly 5% at the start of the session and traded below $73 a barrel, while the global benchmark Brent traded around $77. Saudi Arabia's Energy Minister, Prince Abdulaziz bin Salman, said he would "do whatever necessary to ensure stability in this market" after a tense OPEC+ meeting that took place over the weekend.

This is reported by Bloomberg.

Last month, oil in New York fell 11%, as demand concerns impacted outlook, particularly in China. Most market observers, including Goldman Sachs Group Inc., expected OPEC+ to keep production steady, and the remaining members of the 23-country coalition did not propose any additional actions.

This has led to Saudi Arabia potentially sacrificing further market share for its stabilisation. While other group members have promised to maintain existing reduction volumes until the end of 2024, russia has made no commitments regarding further production cuts, and the United Arab Emirates has secured a higher production quota for the following year.

Background. Mind previously reported that Brent crude futures on ICE had fallen over 2% due to problems with US government debt and uncertainty from OPEC+ countries.

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