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Crude Rallies as Supply from Saudi Arabia Falls

January 11, 2013 at 5:02 by Vladimir Vyun

Crude oil rallied on falling supply from Saudi Arabia. The Brent grade retreated. The Middle Eastern country slashed its output by 465,000 barrel (4.9 percent), the biggest cut since November 2008, to 9.025 million barrels per day, the lowest level in 19 months. Saudi Arabia reduced production on concerns that exports from other countries may oversupply the market.

Crude also rallied on hopes for global economic recovery. The signs of continuing growth in China and prospects for recovery in Europe lifted the mood of traders. A growing economy usually means higher demand for fuel.

February future for delivery of crude oil (WTI) rose $0.02 (0.02 percent) to $93.84 per barrel as of 4:51 GMT on NYMEX today. Contract for Brent graded declined $0.35 (0.31 percent) to $111.54 per barrel on ICE.

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