Investing.com investing.com 06 Jan, 2021 15:30 am

Oil Tops $50 With Saudis Pledging a Surprise Unilateral Cut By Bloomberg

Oil Tops $50 With Saudis Pledging a Surprise Unilateral Cut By Bloomberg
Oil Tops $50 With Saudis Pledging a Surprise Unilateral Cut

Photographer: Luke Sharrett/Bloomberg (Bloomberg) -- Oil surged to its highest since February after Saudi Arabia pledged to voluntarily cut output by an extra 1 million barrels a day in what Russia’s Deputy Prime Minister described as a “new year gift” to the market.Russia and Kazakhstan will be allowed to boost output by a combined 75,000 barrels a day in both February and March.Oil eclipsed $40 a barrel in New York on Friday, extending a slow but relentless rise that’s been fueled by a pick-up in demand and could signal a reawakening for U.Futures in New York rose 4.

Some of the nearest oil contracts were trading at a premium to longer-dated ones, a bullish structure known as backwardation that indicates strong demand and tight supplies.West Texas Intermediate for December 2021 was trading at a premium of roughly $2 to the same contract a year ahead.

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