By Peter Nurse
Investing.com – Oil prices spiked by over a dollar on Monday on news that Saudi Arabia has announced that it will cut its output by another one million barrels a day, eating into the massive oversupply that caused prices to slump.
At 8:10 AM ET (1210 GMT), futures traded 1.5% higher at $ 25.12 a barrel, while the international benchmark contract rose 0.9% to $ 31.24. Before the announcement, WTI had traded at just under $ 24 a barrel.
Both benchmarks have notched up gains over the past two weeks as countries have eased lockdowns imposed to cope with the coronavirus, helping a modest rebound in fuel demand, while oil output has been cut worldwide.
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