Oil prices rose on Monday after weeks of losses on oversupply and weak demand forecasts after Saudi Arabia signaled that it would cut supply in order to stabilize the markets.
OPEC and its allies signaled a willingness to cut production next year by 1m barrels per day (bpd) on October 2018 levels, according to reports.
That would reverse the 1m bpd increase in production agreed to in June.
Saudi Arabia’s energy minister Khalid Al-Falih said US sanctions on Iran had removed less oil from the market than expected because of waivers exempting major buyers from sanctions.
“Sanctions didn’t cut so much out of the market as anticipated….“There will need to be a reduction of supply from October levels approaching 1m barrels … The consensus is that we need to do whatever it takes to balance the market,” Al-Falih said.
