Saudi Arabia said OPEC will cut oil production by about 2,000,000 barrels a day. Saudi oil minister Ali Naimi said “supply is still somewhat in excess of demand” and global stockpiles are higher than normal.
OPEC is pressing Russia and other producers outside the cartel to cut production by 600,000 barrels a day.
“Russia is an important country and we expect it to reduce 400,000 barrels a day to support OPEC’s decision,” OPEC’s secretary general el-Badri, stated today in Algeria.
Oil ended the session down down 0.91 at 43.60 on the NYMEX. In the after-hours electronic trading oil fell to 42.56.
This turnaround in oil prices followed a very volatile Monday, in which crude oil futures had just touched the very important psychological level of 50 dollars a barrel for the first time in two weeks and then reversing to close down 4% on the day.
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