Brent crude rose on Monday after Saudi Arabia, the world’s largest oil exporter, announced a cut in supplies starting from December. Saudi Arabia aims to stabilize the market after a series of losses adding up to around 20% in crude oil since the beginning of October.
Brent crude futures rose 2% to $71.58 a barrel, while US crude futures rose 1.5% to $61.07 a barrel.
Saudi Arabia plans to cut its supply to world markets by about 500,000 barrels per day in December, OPEC’s energy minister Khaled Al-Falih said on Sunday. OPEC is also trying to persuade other producers to take the same route, and reduce output. Al-Falih said on Monday that OPEC believes that the market needs to achieve balance by reducing the oil supply next year by about one million barrels per day compared with the levels of October.
“The technical analysis of the market tells us that there will be a need to reduce supplies compared to the October levels and close to one million barrels, and that we need to do everything necessary to achieve balance in the market and if this means reducing supplies by one million barrels per day, “He said.
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