Asian energy firms rally with oil on output cut deal

Hong Kong: Energy firms in Asia surged with rocketing oil prices on Monday after 11 non-OPEC countries agreed to huge cuts in crude production, while Saudi Arabia also signalled a bigger reduction in output than previously agreed.

The 11 nations, led by Russia, said they would pump more than half a million fewer barrels a day from next month in an effort to address a global supply glut that has scythed prices over the past two years.

The cut will contribute to the Organization of the Petroleum Exporting Countries' own initiative unveiled with Russia on November 30.

Also at the weekend OPEC kingpin Saudi Arabia said it would slash production beyond what was previously agreed by OPEC last month, providing an additional boost for prices.

"This is a very powerful message that producers want to balance the market higher," said Chris Weston, chief market strategist in Melbourne at IG, told Bloomberg News. "As a statement of intent, this is about as bullish as it gets."

Both main contracts surged almost five percent in early Asian trade on Monday, setting a fire under energy firms in the region.

Hong Kong-listed CNOOC added 0.8 per cent and PetroChina gained 1.1 percent while in Sydney Woodside Petroleum was up 2.9 percent and Japan Petroleum jumped 3.8 per cent in Tokyo.