Tuesday, November 04, 2008

Oil jumps 10 percent on Saudi supply cuts | Reuters

Oil jumps 10 percent on Saudi supply cuts | Reuters: "By Edward McAllister | NEW YORK (Reuters) - Oil prices jumped more than 10 percent on Tuesday on signs Saudi Arabia and other OPEC members had made cuts in crude exports and as global financial markets rallied ahead of the U.S. election result.

Saudi Arabia has reduced exports after the Organization of the Petroleum Exporting Countries agreed last month to lower output, according to trade sources, with some estimating the world's top exporter had cut shipments by around 900,000 barrels per day from a peak in August.

U.S. crude settled up $6.62 at $70.53 a barrel. London Brent crude rose $5.96 to settle at $66.44 a barrel.

Crude prices have plummeted from a record above $147 a barrel in July as the global credit crisis hit the wider economy, damping fuel demand in major consumer nations, including the United States.

The steep drop prompted OPEC to agree to reduce output by 1.5 million bpd at an emergency meeting last month, and some members have called for additional reductions."

Helge: I've to follow this more carefully.
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