WTI crude futures jumped as much as 4.6% to around $75 per barrel on Monday before paring gains to trade below $74, after Saudi Arabia pledged to reduce output by another 1 million barrels per day from July. That would bring the country’s production level to around 9 million barrels per day next month, the lowest in years. Energy Minister Prince Abdulaziz bin Salman said he “will do whatever is necessary to bring stability to this market” at a high stakes OPEC+ meeting over the weekend. Meanwhile, Russia made no commitment to reduce output further and the United Arab Emirates was allowed to raise output targets for next year. Still, lingering demand concerns, especially from top crude importer China, continued to weigh on sentiment. The prospect of further interest rate hikes from the US Federal Reserve also clouded the outlook for commodity markets.
