Oil gains to near $55 on Saudi cuts and democratic sweep
Brent oil climbed to near $55 a barrel as Saudi Arabia’s unilateral output cut eased over-supply fears and a Democratic sweep in the US paved the way for more stimulus spending.
Futures in London climbed 0.6% on Friday and are up around 6% for the week. Democratic wins in elections in Georgia mean the party is poised to take control of the Senate, House and presidency, spurring a broad move higher in financial markets. That came after Saudi Arabia pledged earlier in the week to cut production by 1 million barrels a day in February and March.
The spreading coronavirus remains a near-term cap to further gains, however. Accelerating cases across Europe prompted a call from the World Health Organization for stricter measures across the continent, while the UK’s latest restrictions are already compounding a plunge in fuel sales. China has locked down a city of 11 million near Beijing to contain an outbreak.
