Crude oil rose for the first time in seven days in New York after the Organization of Petroleum Exporting Countries’ president said there was consensus for a “significant” production cut when the group meets next week.
Group president Chakib Khelil told the Associated Press a “severe” cut may be needed to halt the decline in prices. Slowing world economies will trim global demand growth to 0.2 percent next year, the International Energy Agency said Dec. 5.
Crude oil for January delivery rose as much as $1.33, or 3.3 percent, to $42.14 a barrel in after-hours electronic trading on the New York Mercantile Exchange. It was at $41.81 at 10:13 a.m. Sydney time.
Takeover rumour for Santos
ASX oil companies rose strongly in Monday trading. According to Chinese reports, China National Petroleum Corp is looking to team up with a foreign oil company to bid for Santos. Woodside Petroleum (ASX:WPL) was up 8.0%, or $2.53 to $33.01 and Santos (ASX:STO) was up 9.3%, or $1.15, to $13.30.