Oil Surges in Choppy Trading on Deepening Production Cuts

  • Shell said upstream production could fall by a third in 2Q
  • WTI rose as high as $19.37 a barrel in volatile trading
Photographer: Matthew Busch/Bloomberg
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Oil climbed for the second day as global production cuts deepened and signs of a recovery in physical markets emerged.

Futures in New York soared as much as 29% in volatile trading Thursday. Royal Dutch Shell Plc said that upstream oil and gas production could fall by as much as a third, while ConocoPhillipsBloomberg Terminal said it will reduce output by over 400,000 barrels a day in June. Norway said it will cut production by 250,000 barrels a day in June and 134,000 barrels in the second half of the year.