Oil Extends Biggest Gain in 6 Weeks as Saudis Make Deeper Cuts

Futures increased 1.2 percent in New York after Saudi Arabian Energy Minister Khalid al-Falih said in Abu Dhabi the kingdom has reduced output to less than 10 million barrels a day, going beyond its obligations under a deal between OPEC and other producers. Prices climbed 2.8 percent on Wednesday as the Energy Information Administration said that U.S. refineries used 17.1 million barrels a day of crude last week, the most in weekly data compiled since 1989.

West Texas Intermediate for February delivery was at $52.85 a barrel on the New York Mercantile Exchange, up 60 cents, at 12:13 p.m. in London. Total volume traded was 5.5 percent above the 100-day average. The contract gained $1.43 to $52.25 on Wednesday, rising the most since Dec. 1.

Brent for March settlement was 74 cents higher at $55.84 a barrel on the London-based ICE Futures Europe exchange. The contract climbed $1.46, or 2.7 percent, to $55.10 on Wednesday. The global benchmark was at a premium of $2.18 to March WTI.

U.S. crude inventories expanded by 4.1 million barrels last week, the EIA reported on Wednesday. Analysts surveyed by Bloomberg had projected a 1.5 million-barrel gain. Crude production increased by 176,000 barrels a day to 8.95 million barrels a day, the highest level since April.

Back To Top
×Close search