Oil prices jump as OPEC+ announces output cut of 100,000 bpd

RIYADH: Oil prices rose more than 3 percent on Monday as the Organization of the Petroleum Exporting Countries and its allies agreed a small production cut to bolster prices. At a meeting at 1pm CEST on Monday Sept, 5, the group, which includes Russia and is known as OPEC+, agreed to reduce output by 100,000 barrels per day, with a statement saying “the production level was only intended for the month of September 2022.” Brent crude futures futures for November delivery rose $3.43 to $96.45 a barrel, a 3.7 percent gain, by 9:14 a.m. EDT (1314 GMT). US West Texas Intermediate crude was up $2.94, or 3.4 percent, at $89.87 after a 0.3 percent gain in the previous session. US markets are closed for a public holiday on Monday.
A statement on the Saudi Press Agency after the meeting said that OPEC+ had “noted the adverse impact of volatility and the decline in liquidity on the current oil market and the need to support the market’s stability and its efficient functioning.” It added: “The Meeting noted that higher volatility and increased uncertainties require continuous assessment of market conditions and readiness to make immediate adjustment to production in different forms, if needed, and that OPEC+ has the commitment, the flexibility, and the means within the existing mechanisms of the Declaration of Cooperation to deal with these challenges and provide guidance to the market.”-Arab News