Crude oil prices jumped about 4 per cent on Tuesday after No. 1 oil consumer the United States cut output forecasts and Russia, Saudi Arabia and other big producers signaled joint action to support the market. A weakening dollar added support for oil, aside from bets that the U.S. oil rig count could tumble again this week after last week’s unexpectedly sharp decline of 26 rigs.
Brent, the global benchmark for crude, was up $2, or 4 per cent, at $51.25 a barrel by 10:58 a.m. EDT (1458 GMT).
Traders also cited technical buying for Brent at above $50 a barrel as it headed for its first three-day gain in a stretch after Monday’s rise of more than 2 per cent and Friday’s climb of nearly 1 per cent. West Texas Intermediate (WTI), the U.S. crude benchmark, rose $1.64, or 3.6 per cent, at $47.90. — Reuters
