Shares of energy companies soared as oil prices rallied to their highest levels since the coronavirus pandemic began.
Saudi Arabia said it would unilaterally cut 1 million barrels a day of crude production starting next month, a surprise move signaling the kingdom's worry that a resurgent coronavirus is threatening global economic recovery.
That announcement came after Riyadh agreed earlier in the day with other big producers to keep the group's collective output flat, after a now-monthly assessment by the Saudi-led OPEC cartel and a group of big producers led by Russia.
In that deal, the two groups, collectively called OPEC-plus, agreed to a complex deal to hold production broadly unchanged from current levels.
The decision comes as global demand shows fragile signs of recovery, but as many countries including the U.K. go into full lockdown again amid spiking cases of the virus.
Natural gas prices also ended higher for a third straight session, closing up 4.7% at a two-week-high on forecasts for colder weather and rising LNG demand in Asia. Prices have now risen 12% over the past three sessions, the largest three-day rally since late October.
Write to Rob Curran at rob.curran@dowjones.com
(END) Dow Jones Newswires
01-05-21 1709ET
