Saudi Arabia, Russia reach deal, cut oil output by 10m barrels per day

Saudi Arabia and Russia have agreed in principle on a deal to carry out the biggest organized oil-production cuts in decades, after a month-long feud and a drop in demand due to the coronavirus crisis which affected crude oil prices.

Prices shot higher on Thursday ahead of the announcement before abruptly losing momentum and shedding most of their gains on a day of volatile trading.

U.S. crude was up 3.4% at $25.95 a barrel and Brent crude oil was last up 3.2% at $33.91 a barrel.