Crude oil rose more than 4 percent in New York after the United Arab Emirates said it would reduce production to comply with OPEC’s supply curbs. Abu Dhabi National Oil Co., the biggest producer in the U.A.E., will reduce oil supply to Asia in January and February, according to a statement sent to Asian buyers. OPEC agreed to a record production cut on Dec. 17 in response to collapsing demand because of the economic slowdown. Oil also advanced because the dollar dropped against the euro. “There are signs that the UAE and Saudi Arabia are abiding by their OPEC targets,” said Tom Bentz, senior energy analyst at BNP Paribas in New York. “The dollar is weaker, which is probably also giving the market some support.” Crude oil for February delivery rose $1.12, or 3.2 percent, to $36.47 a barrel at 10:05 a.m. on the New York Mercantile Exchange. Futures increased as much as 4.4 percent to $36.90 a barrel today. Prices, which are down 14 percent this week, have declined 75 percent from a record $147.27 on July 11. Brent crude oil for February settlement increased 88 cents, or 2.4 percent, to $37.49 a barrel on London’s ICE Futures Europe exchange. Both Nymex and ICE were closed yesterday because of the Christmas holiday. A decline in crude oil to $25 “is in the cards,” Gulf Oil LP’s Chief Executive Officer Joe Petrowski said today in a CNBC interview. Gulf, a Newton, Massachusetts-based wholesaler, distributes motor fuel to 1,800 branded filling stations in the Northeast. “The downside is well in gear,” he said. Supply Reductions Abu Dhabi National, known as Adnoc, will cut supplies of the Murban grade by 15 percent and the Upper Zakum grade by 3 percent next month, mostly in Asia. Adnoc said earlier this month it would meet all oil obligations for January. The U.A.E. produced 2.35 million barrels of crude oil a day in November, making it OPEC’s fourth-largest producer, according to Bloomberg News estimates. The reduction comes after the Organization of Petroleum Exporting Countries, supplier of more than 40 percent of the world’s oil, agreed to trim production targets by 2.46 million barrels a day starting next month. Japan, the world’s third-largest consumer of oil, said its crude imports fell for a second month in November as the country’s industrial output plunged the most in almost 55 years. Imports declined 12 percent to 18.35 million kiloliters (115 million barrels) last month, the Ministry of Economy, Trade and Industry said in a report today. Houston Ship Channel The Houston Ship Channel, which serves the largest U.S. petroleum port, is closed to tankers and other large vessels because of fog at the mouth of Galveston Bay, the U.S. Coast Guard said. It typically takes two to three days before a ship- channel shutdown begins to affect refinery operations in the Houston area. The area’s eight refineries have a combined processing capacity of 2.22 million barrels a day, which represents 13 percent of the U.S. total, according to their owners and the National Petrochemical and Refiners Association.

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