The 11 members of the Organization of Petroleum Exporting Countries bound by quotas will cut supplies 3.8 percent to 25.3 million barrels a day in February, according to consultant PetroLogistics Ltd. The group may cut production further when it meets next on March 15, Algerian oil minister Chakib Khelil said. The U.S. currency declined for a third day versus the euro, the longest losing streak this year.
Crude oil for April delivery gained as much as 77 cents, or 2 percent to $40.80 barrel, in electronic trading on the New York Mercantile Exchange. The contract traded for $40.63 at 12:23 p.m. London time.
The dollar fell on speculation the U.S. government may increase its stake and end up holding as much as 40 percent of Citigroup’s common stock, the Wall Street Journal reported. A decline in the U.S. currency typically prompts investors to buy commodities as an inflation hedge.
Oil supply from 11 OPEC members will average 25.3 million barrels a day in February, down from 26.3 million barrels a day in January, Conrad Gerber, founder of PetroLogistics, said today. Members have a quota of 24.845 million barrels a day.
Brent crude oil for April settlement rose as much as 94 cents, or 2.2 percent, to $42.83 a barrel on London’s ICE Futures Europe exchange and traded at $42.59, up 70 cents, at 12:24 p.m. London time.