Investing.com - Crude futures soared in early Asia on Monday on a deal that joined OPEC and non-OPEC producers into cutting output to support prices and crimp oversupply.
U.S. crude on the New York Mercantile Exchange jumped 4.95% to $54.04 a barrel. Global benchmark Brent futures on London't Inetrcontinental Exchange gained 4.71% to $56.92 a barrel.
OPEC and non-OPEC producers struck a deal at the weekend to cut output and reduce a global oversupply by removing 558,000 barrels a day of crude oil from the market. That would come on top of 1.2 million barrels a day in cuts already agreed to by OPEC.
Last week, oil prices climbed on Friday ahead of a weekend meeting of the Organization of the Petroleum Exporting Countries and non-OPEC producers to finalize the details of a planned output cut.
While the output cut agreement has boosted oil prices, some remain skeptical on the ability of major producers to adhere to output limits.
Meanwhile, Reuters reported Sunday that oil production by Saudi Arabia rose to a new record high in November.
OPEC and Russia have already reported that output hit record highs since the deal was announced, adding to fears that the global supply overhang could persist well into 2017.
Some analysts have also warned that the cuts are likely to cause other producers, particularly U.S. shale drillers, to quickly ramp up output as prices rise.
In the week ahead, markets will focus their attention on the implementation and impact of the OPEC agreement. Traders will also be watching U.S. stockpile data on Tuesday and Wednesday for fresh supply-and-demand signals.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets.
On Friday, data showed the U.S. rig count up 27 rigs from last week to 624, with oil rigs up 21 to 498, gas rigs up 6 to 125, and miscellaneous rigs unchanged at 1, but down 85 rigs from the same period last year when the count was 709, with oil rigs down 26, gas rigs down 60, and miscellaneous rigs up 1.
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