Brent Up Almost 3%, Biggest Gain Since June, On Reported Saudi Cut
The 12-member OPEC meets on Nov. 27 to consider adjusting its output target of 30 million barrels per day for the first half of 2015 and so far only a minority of members have called for an output cut.
Prices rallied on Thursday after an industry source said the amount of crude supplied by Saudi Arabia to domestic and export markets last month fell to 9.36 million barrels from around 9.69 million barrels in August.
"A story like that would certainly move the market no matter who said it, because the Saudis themselves told OPEC they had raised production," said James L. Williams, energy economist at WTRG Economics in London, Arkansas.
Saudi Arabia, the world's largest oil producer, told OPEC's September world oil supply report that it pumped 9.7 million barrels per day (bpd), up from around 9.6 million bpd in August. Barrels not supplied to the markets are put into storage.
"The question in every trader's mind is what is OPEC going to do at its November meeting, and all that uncertainty has made the market go yoyo the past few days," Williams said.
Saudi Arabia has previously sent signals it is comfortable with markedly lower oil prices and willing to maintain high supply levels to compete for market share.
Crude inventories in the United States, the No. 1 oil importer, meanwhile, surged by 7.1 million barrels last week to 377.68 million barrels, more than double what analysts had forecast.
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