Oil advanced at the week's open after Saudi Arabia said it will make an extra 1 million barrel-a-day supply cut in July, taking its production to the lowest level for several years following a slide in prices.
West Texas Intermediate jumped almost 5% early in the session before paring gains to trade below $73 a barrel, while global benchmark Brent changed hands at about $77. Saudi Energy Minister Prince Abdulaziz bin Salman said he "will do whatever is necessary to bring stability to this market" following a tense OPEC+ meeting over the weekend.
Oil in New York tumbled 11% last month as demand concerns weighed on the outlook, especially in China. Most market watchers including Goldman Sachs Group Inc. had expected OPEC+ to keep output unchanged, and the rest of the 23-nation coalition offered no additional action.
WTI for July delivery rose 1.3% to $72.67 a barrel as of 12:26 p.m. in Singapore.
Futures climbed by as much as 4.6% earlier.
Brent for August settlement advanced 1.2% to $77.01 a barrel.
Source : Bloomberg
