Oil Halts Record Losing Streak as Saudis Advocate Supply Cuts - Bloomberg

Oil Halts Record Losing Streak as Saudis Advocate Supply Cuts - Bloomberg:

Oil climbed the most in 2 1/2 weeks, halting an unprecedented decline, as Saudi Arabia pledged to curb output and urged allied crude producers to follow suit.

Futures in New York gained as much as 1.8 percent after entering bear-market territory last week. OPEC Secretary General Mohammad Barkindo on Monday warned that an international supply glut on par with the 2014 surplus that crushed oil markets is imminent. The 500,000-barrel-a-day production cut promised by the Saudis probably is only about half the curtailment required to forestall a glut, according to the kingdom.

“If we believe that Saudi Arabia will cut supply we’ll see what happens in December, but this will tighten up the market and should rally things up a bit,” said Bart Melek, head of global commodity strategy at TD Securities in Toronto. “I wouldn’t be too surprised to see crude head back closer to recent highs, maybe not to the October levels, but certainly off the recent lows.”