Oil RISES in New York, buoyed by OPEC cheer

NEW YORK – Oil prices finished higher in New York on Friday (Sep 30), two days after producing countries reached the consensus needed for a production cut.

However prices edged lower in London, failing to break the threshold of US$50 a barrel.

On the New York Mercantile Exchange, a barrel of West Texas Intermediate for November delivery gained 41 cents to close at US$48.24.

In London, North Sea Brent fell 18 cents to settle at US$49.06 on the Intercontinental Exchange.

After weeks of trading driven by speculation, the Organisation of the Oil Producing Countries on Wednesday reached a surprise agreement to boost prices by cutting daily production by about 750,000 barrels to between 32.5 million and 33 million barrels.

It came as welcome news to markets that had fretted all summer about the seemingly gloomy prospects of emerging from a global supply glut. Prices spiked more than five percent on the news.

Bob Yawger of Mizuho Securities said Friday’s WTI gains were a continuation of bullish sentiment from the OPEC meeting.

“It’s just a follow through from a positive month, positive week,” he said. “With the OPEC event we are kind of gathering momentum.”
– AFP/ec