World oil prices rebounded sharply today after the head of OPEC indicated that the crude producers' cartel could cut its production target for 2015.
The widely reported comments came from Abdullah El-Badri, secretary-general of the Organisation of the Petroleum Exporting Countries (OPEC), after talks with Russian Energy Minister Alexander Novak in Vienna.
US benchmark West Texas Intermediate for October delivery jumped USD 1.96 to USD 94.88 a barrel on the New York Mercantile Exchange.
European benchmark Brent oil for November delivery gained USD 1.17 to USD 99.05 a barrel in London.
El-Badri reportedly said he expects the producers group to trim output in 2015 by about 500,000 barrels per day, from 30 million bpd to 29.5 million.
The cartel is set to hold its next production meeting in Vienna on November 27.
In June, OPEC agreed to keep production at 30 million barrels a day, saying in a statement that while oil demand was picking up, downside risks to the global economy "remain unchecked."
Since the June meeting, oil prices have been in fairly steady retreat, with Brent falling to a two-year low Monday due to in part to concerns about demand in China, the world's second-biggest consumer of crude.
El-Badri's comments are a "reminder that OPEC is well aware of the declining call on OPEC crude, and willing to offset it with reduced output," said Tim Evans, oil analyst at Citi Futures.
Analysts said the oil market also was awaiting will also watch for Wednesday's monetary policy announcement by the US Federal Reserve and the Department of Energy's weekly US oil inventory report.
Analysts on average expect US crude inventories dropped by 1.2 million barrels, according to a survey by Dow Jones Newswires.
