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Oil surges more than $1 after Saudi production cut news

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Investing.com -

Investing.com - Oil futures rallied to the highest levels of the session on Thursday, after Saudi Arabia cut output in September to support the market.

On the New York Mercantile Exchange, crude oil for delivery in December traded at $81.74 a barrel during U.S. morning hours, up $1.18, or 1.46%.

Elsewhere, on the ICE Futures Exchange in London, Brent for December delivery climbed $1.39, or 1.64%, to hit $86.10 a barrel.

Oil prices were boosted after Saudi Arabia said it cut crude oil production by about 328,000 barrels in September to a total of 9.36 million barrels.

London-traded Brent prices have fallen nearly 26% since June, when it climbed near $116, while WTI futures are down almost 23% from a recent peak of $107.50 in June.

Concerns over weakening global demand combined with indications that the Organization of the Petroleum Exporting Countries will not cut output to support oil markets have weighed on prices in recent weeks.

OPEC oil output hit a two-year high of 31 million barrels per day in September, led by higher production from Iraq and Libya.

Some market analysts believe that only a cut in production by the oil cartel will halt the decline in prices.

Oil ministers from the 12-member group are scheduled to meet in Vienna on November 27 to consider whether to adjust their production target for early 2015.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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