Oil market rallies on Saudi output cut

LONDON, AFP: Oil rallied Monday after key producer Saudi Arabia slashed output by a million barrels in a bid to prop up prices, while fellow OPEC+ members agreed to continue current cuts to 2024.

International benchmark Brent oil and US counterpart WTI crude won more than 2% in earlier morning deals.

Asian and European stocks mainly climbed with energy majors boosted by higher crude futures, which boosts profit and revenues.

Sentiment also remains buoyant after the United States clinched a breakthrough deal late last week to lift its debt ceiling and avert a disastrous default.

The 23-nation OPEC+ alliance, which includes Russia, agreed Sunday to continue current output cuts until the end of next year.

But influential player Saudi Arabia also announced its own new cutback taking July production to nine million barrels per day.

Saudi Energy Minister Prince Abdulaziz bin Salman told reporters that he “will do whatever is necessary to bring stability to this market”.

OPEC+ nations are grappling with falling prices on concerns oil demand will weaken as major economies struggle to cool elevated inflation.

Oil has plummeted about 10% since April, when several OPEC+ members agreed to cut production voluntarily by more than one million bpd in an attempt to stem losses.