Oil prices move higher on cuts by Saudi Arabia, Opec | Financial Times

Oil prices move higher on cuts by Saudi Arabia, Opec | Financial Times:

Oil prices rallied on Tuesday amid signs that Opec’s production cuts are taking hold.

In its monthly report, the Organization of the Petroleum Exporting Countries said Tuesday its crude output fell 797,000 barrels a day in January compared with the prior month. The supply cuts, which also include Russia and nine other non-Opec producers, took effect on January 1.

Khalid al Falih, Saudi Arabia’s energy minister, told the Financial Times that the kingdom would reduce production to about 9.8m barrels a day in March, down from a record high of 11.1m barrels a day in November.