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Oil Prices Grow as Saudi Arabia Stands for Further Supply Cuts

Oil rates continued to advance on Tuesday on the back of reports that OPEC and its allies are leaning towards additional output cuts in run-up to the meeting, which is scheduled for this week.

oil rates grow on saudi commentsPhoto: Flickr

At the same time, investors’ doubts about further developments after Saudi Aramco held an IPO, putting pressure on the overall market.

Brent international benchmark for futures with delivery on February gained 0,62 percent, to $61,29 per barrel, whereas January futures for U.S. WTI light oil grew by 0.73 percent, to $56,37 per barrel at 9.12 GMT.

OPEC and partners plan to increase oil production cut by around 400,000 bpd, at the very least until June 2020, according to several sources acknowledged in the matter.

Saudi Arabia seeks to deliver a surprise to the oil market ahead of its Initial Public Offering of state-owned oil giant Saudi Aramco, the sources added.