Oil prices jump on world markets

Oil rose on Tuesday as renewed concerns over tight supply dominated market sentiment after Saudi Arabia warned that the major oil producer could cut output to correct a recent oil price decline, News.Az reports citing Reuters. 

Brent crude futures advanced 93 cents, or 1%, to $97.41 a barrel by 0328 GMT, after a choppy session on Monday when they dropped by more than $4 before paring losses to trade near flat.

U.S. West Texas Intermediate crude futures gained 90 cents, or 1%, to $91.26 a barrel.

The benchmarks are down about 12% and 8% this month, respectively, amid fears about a global recession and fuel demand.

The Organization of the Petroleum Exporting Countries stands ready to reduce production to correct the recent oil price fall driven by poor futures market liquidity and macro-economic fears, which has ignored extremely tight physical crude supply, OPEC's leader Saudi Arabia said on Monday.


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