Oil Settles Above $43 as Saudis Signal Supply Cut
Oil rose more than 3 percent Wednesday on signs that OPEC kingpin Saudi Arabia has slashed supplies to customers for January as the economic crisis continues to slow demand.
Saudi Arabia told major customers it was reducing supplies substantially next month in a move that could bring the kingdom's output below its implied OPEC target of 8.47 million barrels per day.
"There are quite severe cuts—they are going to be seriously cutting back,'' a trader with one major customer said.
U.S. light, sweet crude [[email protected] 43.84 1.77 (+4.21%)] rose $1.45 to settle at $43.52 a barrel after touching a session high of $46.17.
London Brent crude [[email protected] 42.56 1.03 (+2.48%)] settled up 87 cents at $42.40 a barrel.
http://www.cnbc.com/id/28147445
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