Brent Up Almost 3%, Biggest Gain Since June, On Reported Saudi Cut
NEW YORK, Oct 23 (Reuters) - Brent crude oil jumped nearly 3 percent on Thursday, its most in over four months, after an industry source said Saudi Arabia cut output in September following the summer's tumble in prices.
Strong euro zone economic data, better-than-expected Chinese manufacturing numbers and a rally in Wall Street stocks also boosted oil prices, traders said.
Brent's front-month contract for December delivery settled up $2.12, or 2.5 percent, at $86.83 barrel. It was the largest percentage gain in a day for Brent since June 12, and came after a session peak of $87.19.
U.S. crude's front-month finished up $1.57, or 2 percent, at $81.86, after an intraday high at $82.37. That was the biggest percentage rise since Sept. 16.
Both Brent and U.S. crude have lost at least a fifth of their value from June highs due to fears of oversupply.
Some analysts remained skeptical of Thursday's price recovery, saying any rebound between now and next month's meeting of the Organization of Petroleum Exporting Countries (OPEC) was likely to be short-lived.
"I'm not impressed," said Walter Zimmerman, chief technical analyst at United-ICAP in Jersey City, New Jersey. "Considering how far Brent has fallen, from more than $115 to around $82, the nature of this rebound is more of a dead-cat bounce than a dramatic illustration that we have hit some kind of meaningful bottom."
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.
(Additional reporting by Sam Wilkin in London and Jane Xie in Singapore; Editing by Christopher Johnson and Chizu Nomiyama)
WHAT DO YOU THINK?
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
- Weatherford CEO's Rebound Plan Relies On Getting Smaller
- Iran Says Oil Market Is Too Tight For US Zero Exports Target
- China's Squeezed 'Teapots' Eye Petchem Path To Riches
- Baker Hughes: US Drillers Add Oil Rigs For Second Week In Three
- Venezuela Hands China More Oil Presence, But No Mention Of New Funds
- Falcon Oil Declares Commercial Flow Test Results for Shenandoah Well
- Macquarie Strategists Expect Brent Oil Price to Grind Higher
- Japan Failing to Meet Corporate Demand for Clean Power: Amazon
- Pennsylvania County Joins List of Local Govts Suing Big Oil over Climate
- UK Oil Regulator Publishes New Emissions Reduction Plan
- PetroChina Posts Higher Annual Profit on Higher Production
- US, SKorea Launch Task Force to Stop Illicit Refined Oil Flows into NKorea
- McDermott Settles Reficar Dispute
- Russian Navy Enters Warship-Crowded Red Sea Amid Houthi Attacks
- USA Commercial Crude Oil Inventories Increase
- New China Climate Chief Says Fossil Fuels Must Keep a Role
- Oil Demand Outpaces Expectations, Testing Calculus on Peak Crude
- House Passes Protecting American Energy Production Act
- TotalEnergies Restarts Production in Denmark's Biggest Gas Field
- USA Oil and Gas Job Figures Jump
- Republican Lawmakers Say IEA Has Abandoned Energy Security Mission
- Blockchain Demands Attention in Oil and Gas
- Houthis Warn Saudi Arabia of Retaliation If It Backs USA Attacks
- Macquarie Sees USA Oil Production Exiting 2024 at 14MM Barrels Per Day
- Summer Pump Prices Set to Hit $4 a Gallon Just as Americans Hit the Road
- New China Climate Chief Says Fossil Fuels Must Keep a Role
- Chinese Mega Company Makes Major Oilfield Discovery
- VIDEO: Missile Attack Kills Crew Transiting Gulf of Aden
- Norway Regulator Blasts Proposal to Halt New Oil and Gas Permits
- Chinese Mega Company Makes Another Major Oilfield Discovery
- What Is the Biggest Risk to Offshore Oil and Gas Personnel in 2024?
- Vessel Sinks in Red Sea After Missile Strike
- Exxon Rights in Stabroek Do Not Apply to Hess Merger with Chevron: Hess
- Equinor Makes Discovery in North Sea
- Analysts Reveal Latest Oil Price Outlook Following OPEC+ Cut Extension