Oil prices rebounded on Monday morning after Saudi Arabia pledged to cut oil production in December.
Khalid al-Falih, The minister for Energy, announced that Saudi Arabia would cut production by 500,000 barrels per day in December.
Commenting on the pledge, Khalid al-Falih, said: “If all things remain equal, and they almost certainly will not as things will change – it is a dynamic market – then the technical analysis we saw yesterday …. tells us that there will need to be a reduction of supply from October levels approaching a million barrels.”
“The consensus is that we need to do whatever it takes to balance the market. If that means trimming supplies by a million [barrels per day], we will.”
The news comes ahead of OPEC’s oil update, due later this week.
Meanwhile, OPEC’s next meeting is due to happen on December 6th in Vienna, Austria.
In December, the member nations will decide upon their next policy decision.
OPEC, of which Saudi Arabia is a member, also includes 14 other oil producing nations.
Saudi Arabia is the organisations largest crude oil producer and exporter.
Nevertheless, globally, the US leads oil production, with estimates suggesting it is set to surpass 12.1 million bpd.
