STORY: Global oil prices rose on Monday (June 5).
International benchmark Brent crude was up over 2% by mid-afternoon.
The jump came after a weekend pledge by Saudi Arabia to cut output by 1 million barrels per day.
That comes on top of reductions announced earlier.
The Saudi energy minister called it a sweet treat for prices:
“I would have to call it the Saudi lollipop, which is a million barrel of reduction for the start, that starts the 1st of July. And that million is also extendable.”
The Saudi move was announced at a gathering of the OPEC group of oil producing nations in Vienna.
It’s meant to prop up prices as flagging global growth saps demand.
OPEC+, which includes Russia, pumps around 40% of the world’s crude.
The group had already cut its output target by over 3.6 million barrels per day.
Analysts say Saudi Arabia seems determined to keep prices above $80 per barrel in a bid to balance its own budget for the year.
Even after the latest cuts, however, oil prices were still sitting just below that level.
Some also question how much substance there is in the moves on output.
Lower targets set for Russia, Nigeria and Angola appear to merely bring them into line with actual production levels.