Oil prices jumped more than $1 a barrel, or about 2 percent, on Monday, after Saudi Arabia, the world’s largest oil exporter, pledged to cut production by a further one million barrels, starting in July.
International benchmark Brent crude added 1.1 percent to trade at $76.98 per barrel, while U.S. equivalent West Texas Intermediate rose 1.3 percent to $72.66. WTI had earlier jumped as much as 4.6 per cent while Brent peaked 3.4 percent higher.
Russia, the world’s second-largest oil exporter, could also have its production targets lowered, though the group said this was subject to review. Meanwhile, the UAE will be able to increase its production.
The reduction will lower Saudi Arabia’s output to 9mn b/d in July, and comes in addition to a voluntary 500,000 b/d cut announced by the kingdom in April, when its output was around 10.5mn b/d.
