Oil rises on news of additional production cuts

Oil rose after Saudis pledged 1 million barrels per day cuts at OPEC+ meeting Oil rose at the start of the week after Saudi Arabia said it would cut an extra 1 million barrels per day of supply in July, cutting output to a multi-year low after prices fell. U.S. crude rose almost 5% earlier in the session before paring gains to below $73 a barrel, while global benchmark Brent traded hands at around $77. Saudi Energy Minister Prince Abdulaziz bin Salman said he would “do whatever it takes to bring stability to this market” after a tense OPEC+ meeting over the weekend. “I think the voluntary cut is more likely to be a hedge than a sustained rally,” said Vivek Dhar, director of mining and energy commodities research at Commonwealth Bank of Australia. “Markets may turn to focus on the broader outlook for macroeconomic weakness.”Oil in New York fell 11% last month as demand concerns, particularly in China, weighed on the outlook. Most market watchers, including Goldman Sachs Group Inc., had expected OPEC+ to hold output steady and the rest of the 23-nation coalition did not recommend any additional action. That left Saudi Arabia ceding more market share to help stabilize the market. Others in the group have pledged to maintain their current cuts until the end of 2024, while Russia has not committed to further cuts and the United Arab Emirates has secured a higher output quota for next year.