Oil prices jumped more than $1 a barrel on Monday after major producers finally agreed their biggest-ever output cut, but gains were capped amid concern that it won't be enough to head off oversupply with the coronavirus pandemic hammering demand.

After four days of wrangling, the Organization of the Petroleum Exporting Countries (OPEC), Russia and other producers, a group known as OPEC+, agreed on Sunday to cut output by 9.7 million barrels per day (bpd) to support oil prices, sources said, representing around 10% of global supply.

Total global oil supply cuts could come to 20 million barrels per day, around 20% of global supply, Kuwait's oil minister said.

Brent crude (LCOc1) futures rose $1.23, or 3.9%, to $32.71 a barrel by 00:58 GMT after opening at a session high of $33.99. U.S. West Texas Intermediate (WTI) crude (CLc1) futures were up $1.39, or 6.1%, to $24.15 a barrel, after hitting a high of $24.74.

Source : Reuters