EnergyWatch

Crude soars as output deal weighs on bonds; China shares tumble

The price of crude oil soared to the highest level in more than a year after Saudi Arabia signaled that it would reduce production by more than previously agreed.

Photo: /ritzau/Nabil al-Jurani/Arkiv

Crude oil surged to the highest in 17 months amid efforts to cut production, pushing up the outlook for global inflation and sending 10-year Treasury yields above 2.5 percent for the first time since October 2014. Chinese equities tumbled.

Oil jumped about 4 percent in New York and London after Saudi Arabia signaled it will cut output by more than previously agreed amid a weekend deal to tackle oversupply with competitors such as Russia. Longer-dated securities led declines as government bonds around the world tumbled, while climbing energy shares bucked a drop in Europe's wider benchmark stock gauge. China's Shanghai Composite Index sank the most since June as a gauge of smaller companies in Shenzhen plunged more than 5 percent.

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