OPEC, with Russia, reaches a deal to cut production, and the price of oil jumps.

  • Date: 06-Jan-2021
  • Source: The New York Times
  • Sector:Oil & Gas
  • Country:Gulf
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OPEC, with Russia, reaches a deal to cut production, and the price of oil jumps.

Oil Prices Jump After Saudi Arabia Agrees to Reduce Its Output: Live UpdatesOPEC, with Russia, reaches a deal to cut production, and the price of oil jumps.Jan. 5, 2021, 2:40 p.m. ETJan. 5, 2021, 2:40 p.m. ETBy Stanley ReedA Saudi Aramco oil tank in Abqaiq, Saudi Arabia. At an OPEC Plus meeting, Saudi Arabia said it would take a big cut in production in order to support the price of oil. Credit...Maxim Shemetov/ReutersOPEC, Russia and other oil producers reached an agreement on Tuesday that includes a commitment by Saudi Arabia to reduce its oil production by one million barrels a day in February and March — a cut of more than 10 percent from its daily target in January — while Russia and Kazakhstan won relatively modest increases.The overall effect will be a reduction in oil production, a move that pushed prices up to levels not seen since February.Traders, who had worried that the group might agree to an increase, pushed prices up more than 4 percent for the day. Brent crude crossed over $53 a barrel, and West Texas Intermediate exceeded $50 a barrel.Essentially, Saudi Arabia and Russia, the two major producers in the OPEC Plus group, appear to have