Saudi says to work with oil producers to limit volatility

Oil prices staged a rebound on Monday after Saudi Arabia reiterated its intention to work with other major producers to limit volatility within the global crude market.

Brent crude jumped nearly 2 percent to $35.80 per barrel (bbl) on the news, while West Texas Intermediate (WTI) crude gained 1.5 percent to $33.27/bbl.

“The kingdom of Saudi Arabia's seeking to achieve stability in oil markets and that it will permanently communicate with all major oil producers in an attempt to reduce fluctuations,’’ the Saudi cabinet said in a statement after it held its weekly meeting.  

It added that it would ‘’ remain committed to meeting a large share of global energy demand on purely commercial bases.’’

The news comes after much speculation in recent weeks over the Saudi-led OPEC’s intentions to support oil prices.

Last week, Saudi oil minister Ali al-Naimi ruled out any production cuts and said the kingdom would instead focus its efforts on finalizing a deal among OPEC members and non-member producers to freeze output at January levels.

The agreement has received support from Russia, Venezuela and Qatar; however, Iran has said it would not commit to capping production for the time being.