Oil prices rise after Saudi Arabia announces production cuts

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Al-Falih, who on Sunday said the kingdom would cut production by over 500,000 barrels per day in December, said Monday that Saudi Arabia had been giving customers "100 percent of what they asked for".

Trump posted the message hours after Saudi Arabia's energy minister said that OPEC and its allies should reverse about half the increase in oil output they made earlier this year.

"The technical analysis we reviewed yesterday shows that we need a reduction approaching one million bpd to balance the market", Khalid al-Falih told an energy conference in Abu Dhabi.

"Prices have been falling amid a continued rise in crude supplies from big producers, such as Saudi Arabia, Russia and the U.S., more than compensating for lost Iranian barrels", Forex.com analyst Fawad Razaqzada told AFP before the meeting.

United States energy firms last week added 12 oil rigs in the week to November 9 looking for new reserves, bringing the total count to 886, the highest level since March 2015, Baker Hughes energy services firm said on Friday.

Oil prices have shed a fifth of their value in one month since surging to a four-year high in early October.

Government-owned Abu Dhabi National Oil wants to raise capacity to 4 million barrels a day by the end of 2020 and 5 million by 2030, aided by a recently approved five-year, $132 billion budget.

Producers implemented large cuts starting at the beginning of 2017 but they eased output cuts as of June this year.

U.S. crude oil futures were trading around $60.80 per barrel, $1.50 higher than on Friday.

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Iran's exports peaked at 2.8 million barrels per day (bpd) in April, including 300,000 bpd of condensate, a lighter form of oil. Iranian state TV quoted the minster, Bijan Zanganeh, as saying he sees the months ahead as "painful months for oil consumers".

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"We're kind of back to square one: It must feel like November 2016 to them, a lot", said John Kilduff, a Partner at Again Capital Management in NY, refering to the time period when OPEC and its allies agreed to initiate production cuts.

A deal between the OPEC oil exporting nations, the biggest one being Saudi Arabia, and non-OPEC oil producers (known as OPEC+) was signed in December 2016. Output, however, rose by 127,000 bpd to 32.9 million bpd, OPEC said.

Oil's slide accelerated on Tuesday, with US futures dropping to lows not seen in 11 months due to ongoing worries about weakening global demand, oversupply and sell offs across other asset classes, including equities. "Meanwhile, a Saudi. output cut for December has helped boost ailing oil prices".

"But I fully expect there to be coordination to try to keep the oil price within a certain fairway".

BP (BP) CEO Bob Dudley said the Saudi cut represented "quite a bit of oil".

The rig count is an indicator that United States crude production, already at a record 11.6 million barrels per day (bpd), will increase further. Russian Federation has given mixed signals about a cut, with Lukoil Chief Executive Vagit Alekperov saying on Monday that he did not see cuts being necessary.

U.S. President Donald Trump's latest tweet, "Hopefully, Saudi Arabia and OPEC will not be cutting oil production".

Commerzbank, Germany's second-largest lender, said Friday that oil producers must act to prevent prices tumbling.