A handout picture provided by energy giant Saudi Aramco shows its Safaniya and Tanajib onshore plants in Fadhili, located 30 kilometers west of the city of Jubail in the eastern province of Saudi Arabia.

AFP, London

Oil rallied Monday after key producer Saudi Arabia slashed output by a million barrels in a bid to prop up prices, while fellow Opec+ members agreed to continue current cuts to 2024.

International benchmark Brent oil and US counterpart WTI crude won more than two per cent.

Asian and European stocks mainly climbed with energy majors boosted by higher crude futures, which boosts profit and revenues.

Wall Street opened flat after having rallied on Friday on strong US jobs data that lifted hopes the US Federal Reserve will refrain from hiking interest rates next week.

Sentiment also remains buoyant after the United States clinched a breakthrough deal late last week to lift its debt ceiling and avert a disastrous default.

“The outcome of the much-anticipated Opec+ meeting has created a splash in the oil market, if not a wave,” said KCM Trade analyst Tim Waterer.