Oil surged as Saudi Arabia and Russia extended their pact to manage the market and Canada’s largest producing province ordered unprecedented output curbs. After their worst month in a decade, prices in New York and London advanced more than 5 percent on Monday. Although Russia and Saudi Arabia have yet to confirm any fresh cuts, their leaders’ agreement over the weekend opens the door for a deal at OPEC’s meeting this week in Vienna. Alberta’s decision to curtail production by 325,000 barrels a day drove oil’s rally, which largely ignored Qatar’s surprise announcement that it will leave the producer group to focus on natural gas. “All in all the market was in desperate need of a psychological boost and that was provided this weekend, not only from Buenos Aires but also from Alberta,” said Ole Hansen, head of commodities strategy at Saxo Bank A/S. “Putin’s high-five with the Saudi crown prince could also have triggered another much-needed reduction in supply.” Investors are being heartened by a slew of bullish news after crude collapsed into a bear market last month. Fears that the Organization of Petroleum Exporting Countries and its partners will not curb output are easing. Trade tensions between […]
