Oil Trades Near One-Month High After OPEC Agrees Production Cutsby
Group to trim output to as low as 32.5 million barrels a day
OPEC will decide on quotas in November; Iran exempt from cuts
Oil traded near a one-month high after OPEC’s surprise decision to trim output for the first time in eight years.
Futures were little changed in New York after surging 7 percent in the last two days. The Organization of Petroleum Exporting Countries agreed to cut production to a range of 32.5 million to 33 million barrels a day after talks in Algiers on Wednesday. The decision marks the end of the two-year pump-at-will policy that was advocated by Saudi Arabia. Government data Thursday showed U.S. crude supplies declined last week.
West Texas Intermediate for November delivery fell as much as 8 cents to $47.75 a barrel on the New York Mercantile Exchange and was at $47.80 at 8:11 a.m. in Sydney after closing Thursday at $47.83. Total volume traded was about 32 percent above the 100-day average.
Brent for November settlement, which expires Friday, climbed 55 cents, or 1.1 percent, to $49.24 a barrel on the London-based ICE Futures Europe exchange on Thursday. The global benchmark crude closed at a $1.41 premium to WTI.