Opec producers and allies in a record oil deal on Sunday agreed to slash global output by 9.7 million barrel to shore up energy markets, which are battered by the ongoing coronavirus pandemic and oil price war between Saudi Arabia and Russia.
Following the decision, oil prices jumped over three per cent on Monday, which was downhill since the beginning of the year due to the Covid-19 pandemic.
US benchmark West Texas Intermediate was up 3.7 per cent at $23.62 a barrel in early Asian trade while Brent crude, the international benchmark, put on 3.1 per cent to $32.45 a barrel., news agency PTI reported.
The meeting between Saudi-dominated Opec producers, chaired by Energy Minister Prince Abdulaziz bin Salman and allies led by Russian Energy Minister Alexander Novakwas, was held via videoconference for an hour on Sunday in an effort to establish this deal.
The deal was earlier