Saudi Arabia vows to slash oil exports after price slide

OPEC kingpin Saudi Arabia said Wednesday it would slash its oil exports by 800,000 barrels per day in January and promised further cuts as producers move to shore up tumbling prices.

Benchmark Brent crude climbed back to $60 per barrel on Wednesday for the first time in several weeks following the Saudi announcement, which came as producers began implementing a new deal to trim output.

OPEC and its allies decided last month to cut their overall output by 1.2 million bpd from January, to boost prices hit by a supply glut and fears demand could plummet.

Brent crude had hit $85 a barrel in early October, but prices dived more than 40 percent over the following two months on oversupply and fears a trade war between the United States and China could slash demand.

Members of the Organization of the Petroleum Exporting Countries and their partners, who together account for around half of global output, have presided over a supply glut which had sent oil prices tumbling by more than 30 percent between October and December.

But on Wednesday, Brent crude for March delivery hit $60, up 20 percent on the figure two weeks ago, prior to a deal between OPEC members and other major producers to cut output from January 1.

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