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

Sydney: 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 were at $72.98 a barrel at 0009 GMT, up 77 cents, or 1.1 per cent, from their last close. Brent closed down 0.6 per cent on Friday.

US West Texas Intermediate (WTI) crude futures were at $63.39 per barrel, up 63 cents, or 1 per cent, from their previous settlement. WTI closed down 0.2 per cent 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.

"This 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. (Reporting by Colin Packham; editing by Richard Pullin)