Crude oil prices rebounded on Friday after United Arab Emirates announced plans to reduce oil production as a part of the output cut of the Organization of Petroleum Exporting Countries (OPEC).
Light, sweet crude for February delivery rose 2.36 dollars, or 6.7 percent, to settle at 37.71 dollars a barrel on the New York Mercantile Exchange. Price touched a session high of 37.98 dollars a barrel during the trading.
In London, February Brent crude rose 1.99 dollars, or 5.4 percent, to 38.60 dollars a barrel on the ICE Futures Exchange.
Abu Dhabi National Oil Co (ADNOC), the fifth-largest oil exported around the globe, on Friday disclosed its plan for reducing production at specific oil fields.
ADNOC said it would cut February Murban and Upper Zakum allocations by 15 percent, and reduce Lower Zakum and Umm Shaif allocations by 10 percent each.
A source with an Asian refiner said the specified cuts were more than expected, according to Reuters.
OPEC, the oil cartel that produces 40 percent of world oil, announced last week an output cut of 2.2 million barrels per day starting January 1, 2009, in a bid to stable the plunging oil prices.
While top exporter Saudi Arabia effectively started implementing OPEC's cuts even before the cartel had agreed them, other members had yet to follow up with clear action, raising questions about compliance.
Some analysts said the oil prices would resume decline soon with economic slowdown worsening and global energy demand falling sharply.
(Xinhua News Agency December 27, 2008)
