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Oil prices climb as OPEC+ cuts output

Agence France-Presse

<div class="embed-wrap"><figure data-feedback="fb:likes,fb:comments"><img alt="Pump jacks of the German Wintershall Dea company convey crude oil as the sun sets behind an oil field near the German-Durch border in Emlichheim, Germany, March 22, 2022. Sascha Steinbach, EPA-EFE/file" src="https://sa.kapamilya.com/absnews/abscbnnews/media/2022/overseas/09/07/20220907-oil.jpg"/><figcaption>Pump jacks of the German Wintershall Dea company convey crude oil as the sun sets behind an oil field near the German-Durch border in Emlichheim, Germany, March 22, 2022. Sascha Steinbach, EPA-EFE/file</figcaption></figure></div>NEW YORK, United States - Oil prices climbed Wednesday as OPEC and its Russia-led allies announced a major cut in output, while a stocks rally ran out of gas.In Vienna, ministers from the 13-nation OPEC cartel and a group of 10 exporters led by Russia agreed to reduce production by two million barrels a day from November.It is the biggest cut since the height of the Covid pandemic in 2020 and came despite concerns it could fuel inflation further and push central banks to hike interest rates even more.Oil prices had slid in recent weeks back to the levels before the war in Ukraine on concerns of a global slowdown, but have surged in recent days on expectations of the production cut.The main international crude contract, Brent, jumped two percent following the decision before finishing at $93.37 a barrel, up 1.7 percent.&quot;Oil futures are expected to continue their rally in the short and medium term, but continued concerns over a global recession and rising inflation are likely to limit the long-term upside,&quot; said Srijan Katyal of the international brokerage ADSS.<ul class="op-related-articles">	<li><a href="https://news.abs-cbn.com/business/10/05/22/oil-prices-rise-awaiting-opec-output-cut">Oil prices rise awaiting OPEC output cut</a></li>	<li><a href="https://news.abs-cbn.com/business/10/06/22/opec-agrees-major-oil-output-cut-biden-disappointed">OPEC+ agrees major oil output cut; Biden &#x27;disappointed&#x27;</a></li></ul>Swissquote analyst Ipek Ozkardeskaya warned that the big cut could &quot;backfire&quot; on OPEC+ if investors fear it will push inflation higher and force central banks to hike interest rates so much that it triggers a recession.&quot;The higher the energy prices, the sharper the central banks must kill demand to pull the prices lower,&quot; she said before the decision was announced.<div>Rally loses steam </div>Meanwhile, a stocks rally triggered by hopes the US Federal Reserve could let up in its campaign of aggressive interest rate hikes to tame inflation has petered out.European stocks finished lower across the board while Wall Street&#x27;s main indices saw modest declines following a volatile session.US economic reports Wednesday were solid, with private-sector hiring in September topping expectations and services industry activity moderating slightly, but still robust.&quot;Market participants are being forced to contend with the possibility that the Fed won&#x27;t acquiesce to the stock market&#x27;s hopeful wishes,&quot; said analyst Patrick O&#x27;Hare at Briefing.com.In currency trading, the pound took another beating as a speech by British Prime Minister Liz Truss failed to reassure investors about her controversial fiscal plans. &quot;As Prime Minister Liz Truss took to the stage to try and shore up her support among her party and the country, the pound fell further back and government borrowing costs rose slightly,&quot; said market analyst Susannah Streeter at Hargreaves Lansdown brokerage. &quot;The speech will do little to quell dissent over worries that public services will bear the brunt of the tax cuts plans&quot; she added.Key figures around 2030 GMT Brent North Sea crude: UP 1.7 percent at $93.37 per barrelWest Texas Intermediate: UP 1.4 percent at $87.76 per barrelNew York - Dow: DOWN 0.1 percent at 30,273.87 (close)New York - S&amp;P 500: DOWN 0.2 percent at 3,783.28 (close)New York - Nasdaq: DOWN 0.3 percent at 11,148.64 (close)London - FTSE 100: DOWN 0.5 percent at 7,051.60 (close) Frankfurt - DAX: DOWN 1.2 percent at 12,516.22 (close)Paris - CAC 40: DOWN 0.9 percent at 5,985.46 (close)EURO STOXX 50: DOWN 1.1 percent at 3,447.72 (close)Tokyo - Nikkei 225: UP 0.5 percent at 27,120.53 (close)Hong Kong - Hang Seng Index: UP 5.9 percent at 18,087.97 (close)Shanghai - Composite: Closed for a holidayPound/dollar: DOWN at $1.1326 from $1.1476 on TuesdayEuro/dollar: DOWN at $0.9889 from $0.9986Euro/pound: UP at 87.29 pence from 87.01 penceDollar/yen: UP at 144.59 yen from 144.13 yen<ul class="op-related-articles">	<li><a href="https://news.abs-cbn.com/business/09/08/22/oil-tumbles-to-pre-war-level-on-recession-fears">Oil tumbles to pre-war level on recession fears</a></li></ul><div>RELATED VIDEO:</div><figure class="op-interactive"><iframe allow="autoplay; fullscreen" frameBorder="0" height="100%" id="ivsplayer01" scrolling="no" src="https://player.ivideosmart.com/ivsplayer/v4/dist/html/iframe-src.html?iframeid=ivsplayer01&amp;key=e8c22c015ca9eafa76f1e3edfa03c603&amp;spid=3001339&amp;vid=1943085" width="100%"></iframe></figure><div class="iwantbar">Watch more News on <a href="https://www.iwanttfc.com/#!/browse/Genres/News/tag_id_genres/id_news" target="_blank">iWantTFC</a></div>

 Oil prices climbed Wednesday as OPEC and its Russia-led allies announced a major cut in output, while a stocks rally ran out of gas.