Crude oil rose after Venezuela's oil minister said Opec will reduce production by at least 1 million barrels a day to check a slump in prices.
The Organization of Petroleum Exporting Countries (Opec), supplier of over 40 per cent of the world's oil, is ready to make a 'big' cut in supplies when it meets tomorrow, Venezuelan Oil Minister Rafael Ramirez said On Tuesday. Crude has tumbled 70 per cent from a record $147.27 a barrel on July 11 as the deepening global recession cuts demand for fuel.
"There is too much oil on the market right now," said Johannes Benigni, CEO at consultants JBC Energy GmbH in Vienna.
"Whatever they do now, presumably more than a 2 million barrels a day cut, is going to help, but what helps the psychology is that Russia has also announced they may join in."
Crude for January delivery rose 96 cents, or 2.2 per cent, to $45.47 a barrel in electronic trading on New York Mercantile Exchange. The contract traded at $44.97 London time. Opec members and other producers like Russia are under pressure to reduce supplies.
