SINGAPORE (Nov 12): Oil prices rose by about one per cent on Monday after top exporter Saudi Arabia announced a cut in supply for December, seen as a measure to halt a market slump that had seen crude decline by 20 per cent since early October.
The announcement came after crude prices declined by around 20 per cent over a month, as supply has surged, especially by the top-three producers the USA, Russia and Saudi Arabia.
“Saudi Arabia has stepped in front of the oil market bears, proactively announcing they will reduce exports,” said Stephen Innes, head of trading for Asia/Pacific at futures brokerage Oanda in Singapore.
“One thing that is abundantly clear, OPEC is in for a shale shocker as U.S. crude production increased to a record 11.6 million barrels per day and will cross the 12 million thresholds next year,” Innes said. – Reuters