OPEC biggest-ever oil cut fails to lift confidence

OPEC biggest-ever oil cut fails to lift confidence

Asian shares fell on Monday as investors braced for more signs of economic damage from the coronavirus pandemic, although a landmark deal by OPEC and its allies to slash output helped oil prices climb in volatile trade.

Libby Hogan reports

Oil prices climbed and U.S. stock futures dipped in early Monday (April 13) trade, as OPEC and its allies reached a landmark agreement to slash output by a record cut that could curb global oil supply by 10 percent.

Oil prices jumped more than $1 a barrel, but gains were capped amid concern that it wouldn't be enough to head off oversupply as demand continues to fall.

Brent crude futures rose to over $31 a barrel, as the group known as OPEC+, the Organization of the Petroleum Exporting Countries, agreed to reduce output by 9.7 million barrels per day (bpd) for May and June.

This comes after four days of marathon talks.

This is the biggest oil cut ever, more than four times deeper than the previous record cut in 2008.

In a statement from the White House, Trump said quote he welcomed the commitment by Saudi Arabia and Russia "to return oil production to levels consistent with global energy." Canada and Norway also signaled a willingness to cut and the United States said its output would fall steeply by itself this year because of low prices.

Producers will slowly relax curbs after June, although reductions in production will stay in place until April 2022.