Oil rose more than a dollar after Saudi Arabia announced its intention to cut production further

Oil prices rose by more than $1 a barrel on Monday after Saudi Arabia, the world’s largest oil exporter, pledged to cut production by an additional 1 million barrels per day from July 1, as it tackled the unfavorable macroeconomic conditions that dampened markets.

Brent crude futures rose $1.08, or 1.4 percent, to $77.21 a barrel by 0515 GMT, after reaching a high of $78.73 a barrel earlier in the session.

US West Texas Intermediate crude rose $1.07, or 1.5 percent, to record $72.81 a barrel, after touching a high of $75.06 a barrel during Monday.

Thus, the two crude futures extended their gains, after rising 2 percent on Friday, after the Saudi energy minister said that the kingdom’s production would drop to nine million barrels per day in July, from ten million barrels per day in May. This is the largest cut implemented by Saudi Arabia in years.

The voluntary cuts pledged by Saudi Arabia on Sunday added to a broader agreement by the Organization of the Petroleum Exporting Countries (OPEC) and its allies in the OPEC+ bloc, including Russia, to limit supplies until next year as the bloc seeks to prop up oil prices.