MW: Oil rallies 6% on expectations OPEC will cut output
By Polya Lesova
NEW YORK (MarketWatch) -- Oil futures rallied 6% Monday, boosted by expectations that the OPEC oil cartel will agree on a substantial production cut at its meeting later this week. Crude oil for January delivery rose $2.76, or 6%, to $49.03 a barrel in electronic trading on Globex. "We are expecting cuts of around 2 million barrels, as OPEC needs to show their commitment to bringing markets back in equilibrium and prevent a supply glut," said Nimit Khamar, an analyst at Sucden Financial, in a note. "In our opinion, anything less than 2 million barrels may not be enough to calm markets and prevent prices falling back towards recent lows."
