OPEC producers’ unexpected 1.15 million barrel per day production cut could lift global oil prices by $10 per barrel, the head of investment firm Pickering Energy Partners said on Sunday.

The output reduction “will firm prices meaningfully,” said Dan Pickering, co-founder of the Houston-based firm.

“We will probably get a $10 (per barrel) move in crude,” Pickering said in an interview.

Saudi Arabia and other producers disclosed voluntary cuts ahead of Monday’s OPEC ministerial monitoring meeting that was expected to endorse existing production levels. The OPEC group said the move was aimed at supporting market stability.
Source: Reuters