Oil prices rose on Monday amid news that Saudi Arabia would reduce crude sales in December to shore up sagging prices. Media reports suggest that other major producers are also considering reductions heading into 2019.
Global benchmark Brent crude was up 1.28 percent at $71.08 per barrel while U.S. West Texas Intermediate (WTI) crude futures were up 0.66 percent at $60.59 per barrel.
Saudi Arabia, the world’s largest oil exporter and Opec’s de facto leader, plans to trim oil exports by 500,000 barrels per day (bpd) in December but there is no consensus yet among oil producers about cutting production, Saudi Energy Minister Khalid Al-Falih told reporters at the meeting in Abu Dhabi on Sunday. The cut represents a reduction in global oil supply of about 0.5 percent.
With U.S. sanctions failing to shut down Iranian oil exports, traders are worried about abundant global supplies. OPEC and its allies will meet in Vienna on Dec. 6-7 to decide on output policy for 2019.
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