Opec and Russia agree deeper production cuts to prop up oil prices | Financial Times

Opec and Russia agree deeper production cuts to prop up oil prices | Financial Times:

Saudi Arabia moved aggressively to prop up the oil market, agreeing additional curbs in production on top of sealing a new output deal with Opec and its allies.

The so-called Opec+ alliance, which also includes Russia, agreed curbs of 500,000 barrels per day on Friday after two days of fraught meetings in Vienna, with Saudi Arabia pledging additional voluntary cuts of a further 400,000 b/d.

The kingdom has been scrambling to prop up the oil market amid warnings that it faces a severe supply glut in the first half of next year. Saudi Arabia is particularly keen to support the valuation of the state oil company Saudi Aramco, with the kingdom’s energy minister Prince Abdulaziz bin Salman vowing it would hit an elusive $2tn valuation in the coming months.

Talks aimed at reaching a deal had gone on through the night and the decision was finalised on Friday by the countries that have been involved in an oil alliance since 2016. The agreement drove Brent crude 1.4 per cent higher to $64.25 a barrel and took gains for the international oil benchmark to more than 5 per cent over the week.