Oil caught a bid following a report from Reuters saying that Saudi Arabia and Russia have reached a preliminary agreement on output. Both countries were said to have opposite views with Russia opting for output increase and Saudi Arabia opting for a more cautious approach. It looks like Saudis and Russians have met in the middle with a report saying that agreement assumes monthly output increases of less than 0.5 million barrels per day until 2021. Between August and December output cuts are expected to be eased by around 2 million barrels per day.
Market expected an output increase of at least 0.5 million barrels during today's meeting but Reuters report hints that increase may turn out to be smaller. OIL.WTI broke to a fresh post-pandemic highs following the report and jumped above $75 mark for the first time since early-October 2018.
WTI jumped and tested $75 area on reports of Saudi-Russia deal. Source: xStation5
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