Surprise Opec+ oil output cuts boost prices $5 per barrel

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Surprise Opec+ oil output cuts boost prices $5 per barrel
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The group had been expected to maintain its earlier decision to cut output by 2-million bpd until December

Singapore/New Delhi

US West Texas Intermediate crude was at $79.90 a barrel, up $4.23, or 5.6% after earlier hitting the highest level since late January. at its monthly meeting on Monday. Goldman estimated the output reduction could provide a 7% boost to oil prices, contributing to higher Saudi and Opec+ oil revenues.Some analysts questioned the rationale for the extra production cut by Opec+.

“Today’s [Sunday’s] move, like the October cut, can be read as another clear signal that Saudi Arabia and its Opec partners will seek to short-circuit further macro sell-offs and that Jay [Jerome] Powell is not the only central banker that matters,” RBC Capital analyst Helima Croft said.

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