Oil rises to $ 63 after OPEC cuts production
Oil prices jumped 5%, as OPEC producers agreed to reduce production to global fuel stocks and support the market.
Brent crude rose $ 3.26 to 63.32 per barrel. In early trade, it hit a low of $ 60.
Russian Energy Minister Alexander Novak welcomed the cooperation between the Organization of Petroleum Exporting Countries (OPEC) and the producer countries on the basis of a previous agreement signed in Vienna.
He said at the conclusion of the meeting, “OPEC +”: “We need this cooperation and coordination today because of fluctuation in the oil market.”
The Organization of Petroleum Exporting Countries (OPEC), earlier, its readiness to reduce oil production by about 800 thousand barrels per day, proposed to the signatories to the agreement, “OPEC +” to cut production by 400 thousand barrels per day.
Thus, the total reduction agreed by the countries concerned for the year 2019 under the agreement, “OPEC +”, reached 1.2 million barrels and Mia.
“US political pressure was a dominant factor in this (OPEC) meeting and limited the scope of Saudi measures to rebalance the market,” said Gary Ross, chief executive officer of Black Gold Investors.
“OPEC has agreed to exempt Iran from cutting production after it has rejected any production commitments as long as it is subject to US sanctions,” a Bloomberg news agency quoted one of the participants as saying. Source