Oil jumped to its highest level in two weeks after the energy ministers of Saudi Arabia and Russia said they are in favor of extending OPEC’s output-cut deal for nine months.
Futures added as much as 1.8 percent in New York to $48.70, on course for its highest close since May 1. Saudi Arabia and Russia say the production cuts are working, and inventories are decreasing, Energy Minister Khalid Al-Falih, alongside his Russian counterpart, said in Beijing. The ministers agree the deal should be extended through the first quarter of next year at the same volume of cuts, Al-Falih said.
“The market is certainly reacting to comments from Saudi Arabia and Russia’s ministers, and it should help at least maintain current prices,” Will Yun, a commodities analyst at Hyundai Futures Corp., said by phone. “However, we’ll see whether the rebound remains until the U.S. market opens. It could be short-lived and