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Oil jumps as Saudi Arabia suggests OPEC+ to keep production cut plan

Published 20/05/2019, 10:27 am
© Reuters.  Oil jumps as Saudi Arabia suggests OPEC+ to keep production cut plan
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By Colin Packham

SYDNEY, May 20 (Reuters) - Oil prices jumped as much as 1 percent on Monday after Saudi Energy Minister Khalid al-Falih indicated there was consensus among OPEC and allied oil producers to continue limiting supplies.

Brent crude futures LCOc1 were at $72.98 a barrel at 0009 GMT, up 77 cents, or 1.1%, from their last close. Brent closed down 0.6% on Friday.

U.S. West Texas Intermediate (WTI) crude futures CLc1 were at $63.39 per barrel, up 63 cents, or 1%, from their previous settlement. WTI closed down 0.2% in the previous session.

The rally came after Falih said on Sunday there was a consensus among Organization of the Petroleum Exporting Countries and other non-OPEC producers to drive down crude inventories "gently", but his country would remain responsive to the needs of what he called a fragile market. second half, our preference is to maintain production management to keep inventories on their way declining gradually, softly but certainly declining towards normal levels," he told a news conference after a ministerial panel meeting.

OPEC, Russia and other non-member producers, an alliance known as OPEC+, agreed to reduce output by 1.2 million barrels per day from Jan. 1 for six months, a deal designed to stop inventories building up and prices weakening.

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