The Organization of Petroleum Exporting Countries will curb supplies by 5.4 percent this month to 26.15 million barrels a day, according to preliminary estimates from consultant PetroLogistics Ltd. Gold led commodities higher today as the deepening recession left few investment options.
Crude oil for March delivery rose $2.53, or 5.7 percent, to $46.20 a barrel at the 2:30 p.m. close of floor trading on the New York Mercantile Exchange. Prices are up 3.6 percent this year and are 47 percent lower than a year ago.
Starting this month, the members with production targets, all except Iraq, have a combined quota of 24.845 million barrels a day. The 12-member group needs to make the deepest supply cuts in its history to comply with the revised quotas.
Crude-oil supplies rose four times more than forecast to the highest since August 2007 as refineries cut operating rates, the Energy Department said yesterday.
Brent crude oil for March settlement increased $2.69, or 5.9 percent, to $48.08 a barrel on London’s ICE Futures Europe exchange.