Oil price surges 5% as OPEC meet­ing agrees out­put cut

DNA (Delhi) - - WORLD -

Lon­don: Oil prices jumped more than five per cent on Fri­day as big Mid­dle East pro­duc­ers in OPEC agreed to re­duce out­put to drain global fuel in­ven­to­ries and sup­port the mar­ket. Bench­mark Brent crude oil rose $3.48 a bar­rel to a high of $63.54 be­fore eas­ing back to around $63.20 by 1450 GMT. In early trade, Brent had fallen below $60 when it looked as if oil ex­porters might not agree.

US light crude rose $2.69 to a high of $54.18 a bar­rel be­fore slip­ping to around $53.80. Prices fell al­most 3 per cent on Thurs­day af­ter the Or­gan­i­sa­tion of the Pe­tro­leum Ex­port­ing Coun­tries ended a meet­ing in Vi­enna with only a ten­ta­tive deal to tackle weak prices. Talks with other pro­duc­ers were held on Fri­day.

Oil prices have plunged 30 per­cent since Oc­to­ber as sup­ply has surged and global de­mand growth has weak­ened. But Iran gave OPEC the green light on Fri­day to re­duce oil out­put by around 0.8 mil­lion bar­rels per day from 2019 af­ter find­ing a com­pro­mise with ri­val Saudi Ara­bia over a pos­si­ble ex­emp­tion from the cuts, an OPEC source said.

OPEC is seek­ing sup­port from non-OPEC Rus­sia for sup­ply cuts. Rus­sian En­ergy Min­is­ter Alexan­der No­vak re­turned to Vi­enna on Fri­day af­ter dis­cussing the is­sue with Pres­i­dent Vladimir Putin. A Rus­sian En­ergy Min­istry source said Moscow was ready to con­trib­ute a cut of around 200,000 bpd and sources said other non-OPEC pro­duc­ers could con­trib­ute a fur­ther 200,000 bpd of out­put cuts,

—AFP

OPEC Pres­i­dent Suhail al-Mazrouei dur­ing a meet­ing in Vi­enna, Aus­tria on Fri­day.

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