Volatile oil market

 

Saudi Arabia's Energy Minister Prince Abdulaziz bin Salman Kamran Jebreili / AP  

 

Volatile oil market  

Several oil countries unexpectedly throttle production  

 

Several oil-producing countries have agreed on Sunday to reduce their oil production by a total of over one million barrels, international media reports.  

 

Saudi Arabia believes that the decision is "as a preventive measure" to stabilize the market. Russia says the March announcement to cut production by 500,000 barrels per day will continue through the year.  

 

According to the Financial Times and AP, the surprising reduction risks increasing tensions between Saudi Arabia and the United States.  

 

 

Eric Gay / AP 

  

Volatile oil market  

Experts on withdrawn production: "Higher price"  

 

The unexpected announcement that several oil-producing countries are reducing their production affects the oil price, according to the experts.  

 

- Opec+ clearly wants a higher price, says Gary Ross, former oil consultant turned hedge fund manager, to Bloomberg.  

 

The decision could cause the price of oil to bounce up immediately. 

 

- I expect the market to open several dollars higher, says Tamas Varga at oil trader PVM to Reuters.  

 

Saudi Arabia believes that the decision is "as a preventive measure" to stabilize the market.