Brent Rises $1 on Saudi Plan to Cut Production

Brent Rises $1 on Saudi  Plan to Cut Production
Brent Rises $1 on Saudi  Plan to Cut Production

Oil prices were up $1 a barrel on Monday after top global exporter Saudi Arabia pledged to cut production by another 1 million barrels per day from July, counteracting the macroeconomic headwinds that have depressed markets.
Brent crude futures were at $77.15 a barrel, up $1.02, or 1.3%, after earlier hitting a session-high of $78.73 a barrel, Reuters reported.
US West Texas Intermediate crude climbed $1.02, or 1.4%, to $72.76 a barrel, after touching an intraday high of $75.06 a barrel.
The contracts extended gains of more than 2% on Friday after the Saudi energy ministry said the kingdom's output would drop to 9 million barrels per day in July from around 10 million bpd in May. 
The voluntary cut pledged by Saudi Arabia on Sunday is on top of a broader deal by the Organization of Petroleum Exporting Countries and their allies, including Russia, to limit supply into 2024 as the group seeks to boost flagging oil prices.
The group, known as OPEC+, pumps around 40% of the world's crude and has in place cuts of 3.66 million bpd, amounting to 3.6% of global demand.
"Saudi remains keener than most other members in terms of ensuring oil prices above $80 per barrel, which is essential for balancing its own fiscal budget for the year," said Suvro Sarkar, leader of the energy sector team at DBS Bank.

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