Oil prices rise as OPEC cites the success of supply reduction pact

Oil prices rose nearly 3% on Tuesday, a sign that the market may finally be stabilizing after years of oversupply. This news was prompted primarily by Saudi Arabian export cuts. In observance of the OPEC-led supply reduction pact, Saudi allocations for November have been reduced by 560,000 barrels per day.

Additionally, Russia and other producers have agreed to cut production by about 1.8 million barrels per day until March 2018. OPEC has become increasingly optimistic at the speed at which the market has rebalanced.

Short-term price support also came from the United States, where 85% of the U.S. Gulf of Mexico oil production (roughly 1.49 million barrels per day) has been offline following Hurricane Nate. [read more]