Oil tops $50 with Saudis pledging to cut production next month

Oil breached $50 a barrel as Saudi Arabia pledged a voluntary oil-production cut next month, while most of the OPEC+ alliance agreed to hold its production steady.

Futures in New York rose as much as 5.1%, topping $50 a barrel for the first time since February before easing off the high. Saudi Arabia didn’t provide a volume on the cut, according to a delegate, but a “surprise” can be expected in a press conference later on Tuesday. The compromise resolves an impasse between the kingdom and Russia, which was pushing for an increase.

“We’re basically at pre-Covid price levels now,” said Bob Yawger, head of the futures division at Mizuho Securities. “You’re probably going to get some new speculators to jump in, who were just waiting for that big whole number to be breached.”