Saudi Arabia will cut oil production by 1mln barrels a day in a bid to prop up faltering oil prices, it announced after a tense meeting of the Opec+ group of producers in Vienna on Sunday.
Saudi energy minister Prince Abdulaziz bin Salman, Opec’s de facto leader, made the move as part of a deal in which several weaker African members will have quotas reduced from next year.
Russia, the world’s second-largest oil exporter, could also have its production targets lowered, though the group said this was subject to review.
Oil prices have slid in the past 10 months despite several attempts by producers to tighten supplies.
Opec+ announced a surprise cut in April but, after briefly rallying towards $90 a barrel, oil prices again reversed, falling to nearly $70 a barrel at one stage last week.
The news sparked a rise in oil prices on Monday. Brent crude added 1.4% at $77.17 per barrel, while US equivalent West Texas Intermediate rose 1.6% to $72.94.
The 1mln cut will initially be for July but could be extended, Prince Abdulaziz said.
He described it as a “Saudi lollipop” or sweetener for the group, whose other members were spared from making additional cuts this year.