Oil rises to an 11-month high after Saudi Arabia pledged voluntary production cuts

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Oil prices rose today, Wednesday, to their highest level since February 2020, after Saudi Arabia agreed to cut production more than expected in a meeting with its allies from oil producers, while data for the sector showed that US crude stocks fell last week.

Brent crude rose about 1 percent to $ 54 a barrel, the highest level since February 26, 2020.

During the session, Brent scored about $ 54 a barrel, after jumping 5% on Tuesday.

US West Texas Intermediate crude futures hit $ 50 a barrel, which is also the highest since February 26, 2020. The contract closed up more than 4% yesterday.

Saudi Arabia, the world’s largest crude producer, agreed yesterday to implement additional voluntary cuts of one million barrels per day in February and March after a meeting of the OPEC + group.

Saudi Arabia’s agreement to reduce production came as part of a deal to persuade other producers in the group to keep the current production level unchanged.

On the other hand, American Petroleum Institute data showed late yesterday evening that US crude inventories fell by 1.7 million barrels in the week ending January 1 to about 491 million barrels.

Source: CNBC Arabia

The article Oil rises to an 11-month high after Saudi Arabia pledged to cut voluntary production, written in the Al-Borsa newspaper.