Production Cuts Begin with Big Drop in Crude Oil Supply; Prices Rise

Oil output from OPEC countries fell 530,000 barrels a day to 32.6 million a day last month, Bloomberg reports, in what amounts to the sharpest pullback since January 2017.

The cut in supplies is a response by the group to a global glut of oil on the market and a falling price for oil on international indices as fears of a global recession mount.

As Bloomberg reports, Brent crude futures climbed as much as 5.1 percent on Wednesday as shipping data showed Saudi Arabia was delivering its announced cutbacks.

Meanwhile, Saudi Arabia is expected to cut February prices for heavier crude grades sold to Asia due to weaker fuel oil margins, respondents to a Reuters survey said on Thursday.

The official selling prices (OSPs) for Arab Medium and Arab Heavy crude grades are expected to fall by up to 50 cents a barrel in February from the previous month, according to the four refiners participating in the Reuters survey.