Oil prices advance on output cutbacks; equities rise

Oil prices advance on output cutbacks; equities rise

Oil prices rose Monday after key producers Saudi Arabia and Russia further cut crude output in a bid to protect their precious revenues. Brent crude, the international benchmark, and US counterpart WTI jumped after Riyadh extended a voluntary oil production cut of one million barrels per day, while Moscow -- whose invasion of Ukraine last year sparked oil market turmoil -- said it was slashing exports by 500,000 bpd. Prices later pared gains as traders continued to digest the news from the two biggest members of the OPEC+ producers' alliance. Asian and European stock markets meanwhile advanced, as easing inflation data fuelled hopes central banks could be nearing the end of their interest rate hiking cycle. Investor sentiment was subdued on the eve of the Independence Day holiday in the United States. - 'Knee-jerk reaction' - "It's the usual knee-jerk reaction to reports of production cuts," IG analyst Chris Beauchamp told AFP, when asked about the latest oil-price gains. "But given... it's not a coordinated move from all (OPEC+) members it seems hard to imagine there's much more upside in this." He also warned that "the outlook for oil demand remains firmly under pressure" with many analysts forecasting recession next