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Saudis Take Charge of Oil Market With Surprise Output Cut

  • Kingdom to curb 1 million b/d of supply in February, March
  • Crude surged to 10-month high above $50 a barrel in New York
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OPEC+ Deal Sees Saudi Cut, Russia Boost on Output
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Saudi Arabia surprised the market with a large cut in crude production, an assertion of primacy over the global oil industry that came directly from the kingdom’s de-facto ruler.

The move papered over cracks in the OPEC+ coalition and was a U-turn from some recent Saudi oil-policy priorities, but those things paled in comparison next to the global impact of the decision. Crude prices jumped to a 10-month high and shares of energy giants in London and shale drillers in Texas surged.