view mode :
Full
Main image
without images

view comments


Oil surges as OPEC+ surprise output cuts shake markets


Oil prices surged on Monday, posting the biggest daily rise in nearly a year, after a surprise announcement by OPEC+ to cut more production jolted markets.

Brent crude was trading at $83.89 a barrel by 0627 GMT, up $4, or 5%, after touching the highest in a month at $86.44 earlier in the session.

U.S. West Texas Intermediate crude was at $79.39 a barrel, also up about $4, or 5%, after earlier hitting the highest level since late January.

The Organization of the Petroleum Exporting Countries and their allies including Russia shook markets by announcing further production cuts of about 1.16 million barrels per day (bpd) on Sunday.

The group, known as OPEC+, had been expected to maintain its earlier decision to cut output by 2 million bpd until December at its monthly meeting on Monday.

The pledges bring the total volume of cuts by OPEC+ to 3.66 million bpd according to Reuters calculations, equal to 3.7% of global demand.

Reuters

Copy Right Ammonews.net © 2020
https://en.ammonnews.net/article/64910