Oil prices surge after Russia joins Saudi Arabia and OPEC

What is happening: Oil prices have surged by more than 3%.

Why is this happening: Russia have joined Saudi Arabia and the Organization of Petroleum Exporting Countries in trimming oil output. The market has been suffering from oversupply. This is largely down to a huge US shale oil production.

Output: Russia and other OPEC and non-OPEC producers will discuss and agree output figures during a meeting on Thursday. Terms should be agreed for Russia and Saudi Arabia to cut production, which was agreed during last week’s G20 summit.

Trade truce: The truce between the US and China may have also had some affect, as it will boost oil demand.

What did analyst at brokerage PVM Oil Associates Ltd, Stephen Brennock say: “The energy complex is starting the new month with a bang as oil bulls receive a shot of adrenaline from easing U.S.-China trade tensions.”

What did head of commodity strategy at Saxo Bank, Ole Hansen say: “The market is now pricing in a production cut” of between 1 million barrels a day and 1.5 million barrels a day from OPEC and its production allies, including Russia.”