Commodities

U.S. crude was up by 2.7% being sold at $50.92, to record its best daily gain in two weeks

light crude

U.S. crude was up by nearly 3% to end the session being sold at $51 per barrel as Saudi Arabia announced it would cut its oil exports in November by 560,000 barrels per day.

Oil prices were on pace to post their best day in two weeks on Tuesday after Saudi Arabia said it would cut oil exports in November, while a huge chunk of U.S. offshore production remained offline.

The U.S. West Texas Intermediate crude was up by $1.34 which is equal to 2.7 percent to be sold at $50.92, marking as its biggest single session increase since sept. 25 as it touched a session high of $51.06 in the previous session.

The International Benchmark Brent crude also rallied, jumping by 73 cents, or 1.3 percent, to $56.52 for its best daily performance since Thursday.

Investors were focused on news the Saudi Arabia will cut its November crude oil allocations to customers by 560,000 barrels per day, according to the president of Lipow Oil Associates, Andrew Lipow.

WTI last month posted its best monthly gain since April 2016 after OPEC and the International Energy Agency said their outlook for crude oil demand had improved.

Investors will also be keeping an eye on OPEC’s monthly reports on Wednesday. About 85% of the U.S. oil output in the Gulf of Mexico was still shutdown as of Monday which was a slight improvement from Sunday, when more than 92 percent of production was offline.

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