Oil prices rise as Saudi Arabia discusses supply cuts

Oil prices rose on Thursday after Saudi Arabia started talks with customers about a reduction in crude sales to support a plan by Opec to lower global supply.

The Organization of the Petroleum Exporting Countries promised in November to cut output to help prop up prices.

Under the deal, Saudi Arabia agreed to cut output by 486,000 barrels per day (bpd), or 4.61 per cent of its October output of 10.544 million bpd.

"Aramco is approaching all its customers for possible cuts from February and discussing likely (supply) scenarios," one source told Reuters, referring to state oil giant Saudi Aramco.

"Nothing is confirmed yet,"