Saudis surprise oil market with big unilateral production cut

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The kingdom will make an extra cut of 1 million barrels a day, Saudi Energy Minister Prince Abdulaziz bin Salman said.

The kingdom will make an extra cut of 1 million barrels a day, Saudi Energy Minister Prince Abdulaziz bin Salman said on Tuesday .

The Saudi pledge makes for a tighter market than traders had been anticipating and sent crude surging to a 10-month high in New York. Both countries get at least part of what they wanted -- the additional price support desired by Riyadh and the production boost Moscow had been pushing. Still, the contortions that were necessary to secure a consensus after two days of Opec+ talks show the fragility of the alliance.

 

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