Oil Settles Above $54 on Expected OPEC Cut
Oil surged to settle over $54 a barrel on Monday on expectations that OPEC will cut output again and as stock markets rallied off the U.S. government’s plan to rescue U.S. bank Citigroup.
OPEC president Chakib Khelil said a further output cut of more than 1 million barrels per day would be necessary to support the oil market in its current state.
U.S. light, sweet crude rose $4.57, or 9.15 percent, to settle at $54.50. The contract had dipped to a 3-1/2-year low of $48.25 on Friday.
London Brent crude was up more than $4 to above $53.
Source: CNBC
About the Author
Samuel R. Avro is the founder and Editor-In-Chief of Consumer Energy Report. Sam believes that a lot more can be done about the energy problem the world is currently facing. First and foremost, the public must be made aware of all the available options. He firmly believes that the most realistic method of achieving this on a large-scale basis is to report the news for the public to read and discuss. When he isn't too busy covering the energy industry, as a New York area resident, Sam is always willing to take part in a discussion about his World Champion New York Yankees. Motto: Dissemination of information is the key!
