West Texas Intermediate surged from its lowest closing price in more than two years as Saudi Arabia trimmed crude oil supply in September.
Futures gained as much as 1.7 percent in New York, recording the biggest increase since Oct. 17 and erasing an earlier fall of 0.6 percent. The biggest producer in the Organization of Petroleum Exporting Countries cut supply to markets by 328,000 barrels a day last month, to 9.36 million barrels a day, from 9.69 million in August, according to a person with knowledge of Saudi Arabia’s oil policy.
Crude has collapsed into a bear market as producers including Saudi Arabia cut export prices. Global supplies are rising as the U.S. pumps the most in almost three decades and Russia’s output nears a post-Soviet record. OPEC needs to reduce output by 500,000 barrels a day because the market is oversupplied, Samir Kamal, Libya’s governor to the 12-member group, said yesterday.