The Financial Post reports in its Tuesday edition that Saudi Arabia said OPEC and its allies should reverse about half the increase in oil output they made earlier this year as fears of shortages are supplanted by concerns about oversupply and collapsing prices. A Reuters dispatch to the Post reports that producers need to cut about one million barrels a day from October production levels, said Saudi Energy Minister Khalid Al-Falih on Monday. The kingdom will reduce shipments by about half that amount next month, making its second policy U-turn after a summer surge in prices was followed by a swift collapse into a bear market this month. Oil rallied as much as 2.4 per cent in London and 1.8 per cent in New York. The largest producer in the Organization of Petroleum Exporting Countries is once again taking the lead to address shifts in the market. In June, it persuaded fellow producers to end 18 months of production cuts and pump more crude in response to falling output in Venezuela and Iran and pressure over prices from President Donald Trump. This time, Saudi Arabia is urging allies to focus on the risk of rising oil inventories and forecasts for massive growth in rival supplies next year including U.S. shale.