Oil surges as Saudis eye deeper cuts while non-OPEC joins deal

Oil jumped to the highest since July 2015 after Saudi Arabia signalled it’s ready to cut output more than earlier agreed while non-OPEC countries, including Russia, pledged to pump less next year, strengthening the coordinated commitment by the world’s largest producers to tighten supply. Futures rose as much as 5.8 per cent in New York and 6.6 per cent in London. Saudi Energy Minister Khalid Al-Falih said Saturday the biggest exporter will “cut substantially” below the target agreed in November with members of the Organisation of Petroleum Exporting Countries (OPEC). Al-Falih’s comments followed a deal by non-OPEC countries to join forces with the group and trim output by 558,000 barrels a day next year, the first pact between the rivals in 15 years. Oil has gained almost 20 per cent since OPEC announced November 30 it will cut production for the first time in eight years. Saudi Arabia, which led OPEC’s decision in 2014 to pump at will, is leading efforts to take back control of the oil market. The OPEC and non-OPEC plan encompasses countries that pump 60 per cent of the world’s oil, but excludes major producers such as the US, China, Canada, Norway and Brazil. (Ben Sharples and Perry Williams/Bloomberg)