Oil Prices Reach 11-Month High After Saudis Pledge to Cut Output
Oil prices reached an 11-month high on Friday following a pledge earlier this week by Saudi Arabia to cut output and as the global equities markets moved up. Brent crude climbed to $54.92, its highest price since Feb. 26, before falling slightly. US West Texas Intermediate also touched its highest mark since Feb. 25 at $51.34 during trade, again falling slightly afterward. Both benchmarks are on track for weekly gains of more than 5%. On Wednesday, Saudi Arabia, the world’s biggest oil exporter, announced plans to reduce its output by an additional 1 million barrels per day in February and March, despite Russia’s move to add to its production. On Wednesday, Saudi Oil Minister Prince Abdulaziz bin Salman said that the kingdom’s move was a gesture of goodwill and that he hoped it would assist other OPEC countries to comply with their oil production cuts.