Oil prices rose about 1 percent on Monday, breaking a stretch of losses, after Saudi Arabia said OPEC and its partners believed demand was softening enough to warrant an output cut of 1 million barrels per day next year.
Saudi Energy Minister Khalid al-Falih said the Organization of the Petroleum Exporting Countries and its allies agree that technical analysis shows a need to cut oil supply next year by around 1 million bpd from October levels.
Brent crude futures were up 70 cents at $70.88 a barrel by 11:05 a.m. EST (1605 GMT), following four sessions of losses. U.S. crude rose 60 cents to $60.79 a barrel, the first increase after the longest stretch of daily declines since 1984. Prior to Monday’s increase, crude futures had fallen for 10 straight trading sessions.
Saudi Arabia, the world’s largest oil exporter, said on Sunday it would cut its shipments by half a million bpd in December due to seasonal lower demand.