Gold Silver Reports -Crudeoil Up as Saudis to Work With Producers to curb market fluctuations and China’s central bank stepped up efforts to support the economy.
West Texas Intermediate oil increased 3 percent. Saudi Arabia wants a stable oil market, according to state-run Saudi Press Agency. China reduced the amount of cash the nation’s lenders must lock away. The Organization of Petroleum Exporting Countries reduced production by 79,000 barrels a day this month.
“It’s the Saudis’ turn to talk up the market today,” said John Kilduff, a partner at Again Capital LLC, a New York-based hedge fund that focuses on energy. “The market is giving the oil producers the benefit of the doubt now. The move by the Chinese to cut the required reserve ratio is also giving the market support.”
Prices slipped to a 12-year low on Feb. 11 in New York amid speculation a worldwide surplus will be prolonged with U.S. crude stockpiles at the highest level in more than eight decades and the outlook for increased exports from Iran. A proposal to freeze output by Saudi Arabia and Russia is achievable and prices may rise to as high as $50 a barrel by the end of the year, Nigerian Minister of State for Petroleum Resources Emmanuel Ibe Kachikwu told CNBC.
WTI for April delivery rose 97 cents to $33.75 a barrel on the New York Mercantile Exchange. It was the highest close since Jan. 6. Prices advanced 0.4 percent in February, the first monthly gain since October. – Neal Bhai Reports