High oil price after reducing output of Kuwait

12/16/2016
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Oil prices surged in Asian markets on Friday after market sources said that Kuwait notified customers it would cut supplies more than expected from the disease in January as part of a coordinated effort by the oil producers in order to drain the global abundance of oil. Futures trading, Brent crude prices hit around $ 54.22 a barrel at 0114 GMT, higher 20 cents, or 0.37 percent from the closing price of the previous session. The West Texas Intermediate crude futures prices trading at about 24 cents a rose 0.47 percent to $ 51.14 a barrel. Oil prices rose as such after he informed Kuwait, a member of the Organization of the Petroleum Exporting Countries (OPEC), the customers it would cut supplies starting in January as part of an agreement between OPEC and outside the countries of the oil-producing countries to cut production by about 1.8 million barrels a day to reduce the accumulation of supplies fuel, which flooded the market since more than two years. She said Kuwait Petroleum Corporation, on Tuesday, it was officially informed its customers to reduce contractual crude oil supplies for the month of January, in line with OPEC's agreement to cut production to rein in global abundance. Traders said that oil prices in the market showed a recovery after the Kuwait Petroleum Corporation confirmed the reduced supply of oil is more than expected, according to Reuters. The Bank of Australia and New Zealand, on Friday, "The prices rebounded after news of Kuwait's decision to reduce the supply of oil to its customers in the United States and European countries. And it allows for most exporters by reducing the amount of production to customers up to "operational tolerance" under which the state can reduce or increase exporting exports with customers in a short period of notice. Sources in the market that KPC has informed customers it would cut supplies by more than the limits of "operational tolerance", which led to the recovery of oil prices in the Asian markets.

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