Oil bounce stabilises global markets

NEW YORK: Crude oil bounced back from its lowest level since November on the likelihood that key producers could extend output cuts beyond an agreed-on deadline next month, while a global stocks index set a fresh record high as corporate earnings remained strong.

Markets were rattled overnight as crude stumbled further, its weekly decline close to 10% at one point, but comments from Saudi Arabia’s Organisation of the Petroleum Exporting Countries governor helped put a floor under oil prices.

“There’s an emerging consensus among participating countries on the need to extend the production agreement reached last year,” Adeeb Al-Aama said.

Opec, Russia and other producers have agreed to curb production by 1.8 million barrels per day until June 30. Better-than-expected US non-farm payrolls data showed jobs growth rebounded sharply last month with 211 000 added and the national unemployment rate down to a near 10-year low of 4.4%. On Wall Street, the energy sector of the S&P 500 was posting its strongest daily showing since late March. – Reuters