Oil prices have rallied after Saudi Arabia said it would cut production by an extra one million barrels a day in July in an attempt to prop up the crude market.

The Arab state will lower its output to its lowest level in several years as Saudi Energy Minister Prince Abdulaziz bin Salman said he “will do whatever is necessary to bring stability to this market”.

It follows a tense meeting of the Opec+ cartel of oil-producing nations over the weekend, where the 23-member group decided it would not deepen its recent cuts to output.

Vivek Dhar, director of mining and energy commodities research at Commonwealth Bank of Australia, called Saudi Arabia’s decision a “voluntary cut” that was “notable more for downside protection” .

Oil in New York tumbled 11pc last month amid concerns over the outlook for demand, especially in China. 

Today, international benchmark Brent crude has already climbed as much as 1.5pc to more than $77 a barrel, while US-produced West Texas Intermediate has risen as much as 1.6pc toward $73.

Saudi Arabia has sacrificed further market share to stabilise the market. 

While others in the group pledged to maintain their existing cuts until the end of 2024, Russia made no commitment to curb output further and the United Arab Emirates secured a higher production quota for next year.

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