Oil Jumps as OPEC+ Signals Extended Cuts, U.S.-China Hit Pause - Bloomberg

Oil Jumps as OPEC+ Signals Extended Cuts, U.S.-China Hit Pause - Bloomberg:

Oil surged to a five-week high in New York after members of the OPEC+ group, including Saudi Arabia and Russia, signaled an extension of output cuts, and as a China-U.S. agreement to restart trade talks improved the demand outlook.

 Futures rose as much as 3.1% after rallying 11% over the past two weeks. A committee of OPEC and its allies recommended extending output cuts for nine months as meetings on production policy got underway in Vienna. Russian President Vladimir Putin and Saudi Crown Prince Mohammed Bin Salman agreed to prolong the curbs over the weekend. Washington and Beijing declared a truce to their trade war and the U.S. will hold off on imposing additional tariffs on China. 



Oil rose by the most since January last month after escalating tensions in the Middle East spurred concerns over supply. Concerns increased as Iran began to renege on its commitments to a nuclear deal. Separately, the Persian Gulf nation, is backing an extension of OPEC+ output curbs, removing a major hurdle for Saudi Arabia and Russia’s plans.