Crude Prices Rise For Second Day After Report of Reduced Saudi Production

Crude Prices Rise For Second Day After Report of Reduced Saudi Production



Apr 14, 2011

Crude oil climbed for a second day on the New York Mercantile Exchange on a report out of Saudi Arabia that the holder of the world's largest oil reserves, and the second largest producer of oil, has reduced output this month.

May oil futures were up almost 1% to $108.10 per barrel, after the chief economist at Riyadh-based Banque Saudi Fransi said the Kingdom of Saudi Arabia had cut production by 300,000 barrels per day.

Barclays Plc (NYSE:BCS) said the country might be reducing production of its lighter oil blends introduced in response to the disruption of Libyan output last month.

Prices have gone up 18% this year as unrest has swept across the Middle East. Elections in Nigeria later this month have many fearful of decreased output from that country, Africa's top crude producer.