Oil prices rise by 1 percent after Saudi announces December supply cut


By Henning Gloystein

SINGAPORE (Reuters) – Brent crude oil prices jumped by 2 percent on Monday after top exporter Saudi Arabia announced a supply cut in December, a measure likely aimed at halting a market slump that has seen crude decline by 20 percent since early October.

Front-month Brent crude futures (LCOc1), a benchmark for global oil prices, were at $71.59 per barrel at 0644 GMT, up by 2 percent from their last close.

U.S. West Texas Intermediate (WTI) crude futures rose 1.5 percent to $61.08 per barrel.

Saudi Arabia plans to reduce oil supply to world markets by 0.5 million barrels per day (bpd) in December, its energy minister said on Sunday, as the OPEC power faces uncertain prospects in getting other producers to agree to a coordinated output cut.

Khalid al-Falih told reporters that Saudi Aramco’s customer nominations would fall by 500,000 bpd in December versus November due to seasonal lower demand. The cut represents a reduction in global oil supply of about 0.5 percent.

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