NOURNEWS- After Saudi Arabia announced that it had ordered its state-owned oil giant to cut production by 1 million barrels a day, in addition to reducing production agreed by OPEC Plus, oil prices offset their initial decline and rose again.
In last night's trading, the price of US crude jumped 1 percent to above $ 25, and Brent crude rose 0.4 percent to $ 31.
Oil prices rose after Saudi Arabia, which has been hit hard by low prices, said it would cut production in June more than ever before. The voluntary cut, announced by the Saudi Ministry of Petroleum, will remove 1 million barrels a day from world markets. Thus, the total decrease in Saudi oil production will be 4.8 million barrels per day compared to April's production level.
Riyadh hopes the move will encourage other OPEC members to adhere to their agreed production cuts.
MEHRNEWS agency
NOURNEWS