Oil rises on Saudi Arabia's go-it-alone July production cuts
BNN Bloomberg
Oil advanced at the week's open after Saudi Arabia pledged to shave an extra one million barrels-a-day from its production in July, taking output to the lowest level in years in an effort to stabilize the market.
West Texas Intermediate jumped almost five per cent early in the session before paring gains to trade around US$73 a barrel with similar directional moves for international marker Brent. Saudi Energy Minister Prince Abdulaziz bin Salman said he would do “whatever is necessary to bring stability to this market,” following a tense OPEC+ meeting over the weekend.
Oil in New York tumbled 11 per cent last month as demand concerns, especially in China, sapped confidence. Most market watchers had expected OPEC+ to keep output unchanged, including Goldman Sachs Group Inc., whose analysts forecast major producers holding steady. The outcome was “moderately bullish,” the bank said after the gathering in Vienna.
