Oil Tops $50 With Saudis Pledging a Surprise Unilateral Cut
- Other members to hold output steady or make small increase
- Russia, Kazakhstan to boost output in February, March
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Oil surged to its highest since February after Saudi Arabia pledged to voluntarily cut output by an extra 1 million barrels a day in what Russia’s Deputy Prime Minister described as a “new year gift” to the market.
Futures in New York rose 4.9% on Tuesday after briefly topping $50 a barrel for the first time since the pandemic triggered widespread lockdowns and sent fuel demand plunging. OPEC+ reached an agreement following two days of talks to curb supply over the next two months. Other producers will hold supply steady or make a small increase, delegates said. Russia and Kazakhstan will be allowed to boost output by a combined 75,000 barrels a day in both February and March.