Posted on

Oil prices pop after Saudi Arabia pledges more voluntary production cuts


Imaginima | E+ | Getty ImagesOil prices rose following OPEC kingpin Saudi Arabia’s decision to cut production by another million barrels per day.On Sunday, the Organization of the Petroleum Exporting Countries and its partners (known as OPEC+) made no changes to its planned oil production cuts for the rest of the year. However, the world’s top oil exporter Saudi Arabia announced further voluntary output cuts which will be implemented from July.The kingdom’s output will decline to 9 million barrels per day from around 10 million barrels in May, Saudi’s energy ministry said in a statement.Both benchmarks rose more than 2% on Monday during early Asia trade but dipped lower by mid-morning. Global benchmark Brent futures were last trading up 0.93% at $76.84 a barrel, while U.S. West Texas Intermediate futures rose 0.98% to $72.44 per barrel. OPEC+ pumps approximately 40% of the world’s crude and production decisions can have a significant impact on prices.On April 3, several producers of the oil cartel had revealed a combined 1.66 million barrels per day of production declines until the end of this year. And many market watchers, including analysts at Goldman Sachs, had expected the alliance to keep output unchanged this time around.”The market did not widely expect the Saudi decision to cut production by 1 million barrels per day unilaterally …

Read More