Crude Climbs as OPEC and Allies Finalize Production Limitations - Bloomberg

Crude Climbs as OPEC and Allies Finalize Production Limitations - Bloomberg:

Oil in New York jumped after OPEC and allied crude exporters surprised traders with a larger-than-expected output reduction. Futures advanced more than 2 percent in New York and London on Friday. The Organization of Petroleum Exporting Countries and aligned nations will collectively curb production by 1.2 million barrels a day, 20 percent more than previously discussed.

“It’s been a volatile October and November, but this is a nice Christmas present into December,” said Chris Kettenmann, chief energy strategist at Macro Risk Advisors LLC. OPEC “stepped up and delivered this year and we should see volatility come in.”

Crude oil has steadily dropped since early October amid concern over growing supplies and the American government’s go-slowly approach by sanctions against Iran. OPEC and allies ended meetings in Vienna on Friday with an agreement for the cartel to reduce output by 800,000 barrels a day and other producers to cut by 400,000 barrels a day. Iran secured an exemption from the deal.