Crude Oil Settles Above $43 on Saudi Cuts
Crude oil made back some of its losses from the past week on Monday, posting a 7 percent gain largely due to the news that Saudi Arabia is deepening production cuts. U.S. light, sweet crude for January delivery gained $2.90 to settle at $43.71 a barrel, bouncing back from a 25 percent drop last week – its deepest weekly rout in 18 years.
London Brent crude gained about 10 percent.
The world’s largest oil supplier, Saudi Arabia, told Asian refiners that it would cut as much as 10 percent of contracted volumes in January versus a 5 percent cut in December. European supplies were also cut by the oil giant in an effort to reach its target price of $75 a barrel.
The next OPEC meeting, scheduled for Dec. 17 in Algeria, is expected to bring more production cuts in an effort to prop up prices during the economic downturn.
Crude oil suffered six consecutive losing sessions before today, and dropped the most last week since 1991.
Oil Prices Rebound From Recent Lows
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!
