Oil prices soar following Saudi Arabia’s decision to cut output

Gulf Today Report

Oil prices jumped on Wednesday, its highest since February 2020 following Saudi Arabia’s agreement to reduce output and decline in US crude stockpiles last week.

Brent crude rose as much as nearly 1% to $54.09 a barrel while US West Texas Intermediate (WTI) futures reached $50.24 a barrel.

Saudi Arabia on Tuesday decided to reduce oil outputs by 1 million barrels per day (bpd) in February and March followings its meeting with OPEC+. 

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The reductions agreed by Saudi Arabia were included in a deal to persuade other producers in the OPEC+ group to hold output steady.

With COVID-19 cases surging, oil producers are cutting output to support prices as demand declines due to restriction