OPEC’s planned output cut , especially by one member Saudi Arabia by 380,000 barrels of the daily reduction took oil higher trading at $60.88 a barrel in Singapore .
Since OPEC produces 40 percent of world’s oil and since the US stock piles have increased by 5 million barrels to 335.5 million , OPEC’s cut seems to be coming at a time when the US oil demand will increase considerable keeping the OPEC oil supply in demand.
Since the cut would be on actual production it is giving a bullish signal for the short term till the end of the year.
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