By NANCY GONDO
Oil climbed, posting the biggest two-day gain in almost six weeks, after Saudi Arabia said it cut production even more than required by an OPEC deal.
Futures increased 1.5% in New York as Saudi Arabian Energy Minister Khalid al-Falih said the kingdom reduced output to less than 10 million barrels a day, going beyond its obligations under an accord between OPEC and other producers to curb production. Energy Information Administration data on Wednesday showed that U.S. refineries used 17.1 million barrels a day of crude last week, the most in weekly data compiled since 1989. Crude output rose to the highest level since April and the dollar weakened.
Crude has advanced since the deal among OPEC and 11 other nations to temper global supply, but it hasn’t been able to sustain that rally above $55 a barrel amid concern that rising prices will spur more production, especially in the U.S. While Middle East producers have signaled they’re sticking to the pledged reductions, the U.S. government recently raised this year’s output forecast, and explorers have added drilling rigs for 10 straight weeks.
“Whether or not OPEC proves to be fully compliant in their cuts, the market is impressed with their ability to overcome political …read more
Via:: IBD Futures