2023.11.0608:52:00UTC+00Oil Prices Rally As Russia, Saudi Reaffirm Output Cuts

Oil prices recovered sharply on Monday, after having tumbled around 6 percent last week on demand concerns.

Benchmark Brent crude futures jumped 1.4 percent to $86.08 a barrel, while WTI crude futures were up 1.5 percent at $81.73.

Investors shifted focus to the tight global supply outlook after top exporters Saudi Arabia and Russia said they would continue with oil supply curbs of more than 1 million barrels a day through year-end.

Saudi Arabia reportedly confirmed on Sunday to continue with its additional voluntary cut of 1 million barrels per day (bpd) in December to keep output at around 9 million bpd.

Additionally, Russia pledged to continue with its additional voluntary supply cut of 300,000 bpd from its crude oil and petroleum product exports until the end of December.

Traders also watched the latest developments in the Middle East after Israel once again rejected growing calls for a ceasefire in Gaza.

As their ground offensive gathers pace, Israeli forces have claimed that they have cut the Gaza Strip into two.