Mixed day for global stocks as Saudi announcement lifts oil prices

Mixed day for global stocks as Saudi announcement lifts oil prices

Oil prices advanced Monday after key producer Saudi Arabia slashed output by a million barrels in a bid to prop up prices, while Wall Street stocks retreated from multi-month peaks.

After an initial surge on the Saudi announcement, crude prices moderated somewhat as the day progressed.

The 23-nation OPEC+ alliance, which includes Russia, had agreed Sunday to continue current output cuts until the end of next year.

But influential player Saudi Arabia also announced its own new cutback taking July production to nine million barrels per day, in a move that initially gave crude a jolt.

"The Saudis are basically giving up market share here and that strategy won't work over the long-term," said Oanda's Edward Moya.

"The risk of more cuts seems unlikely given the market reaction," Moya said. "Oil might remain stuck in a trading range until we see evidence that China's recovery is improving."

Sentiment remained largely buoyant after the United States clinched a breakthrough deal late last week to suspend its debt limit temporarily and avert a disastrous default.

Asian equities mostly rose, with Tokyo piling on more than two percent to hit a three-decade peak, but European stock markets fell.

Back in New York, major indices pulled back from last week's peaks.

Analysts cited