Oil clocks best day in 7 years on OPEC hopes

[WhiteTara]

http://www.usatoday.com/story/money/2016/02/12/crude-oil-prices-opec-cut-rumors/80286228/

Oil prices scored their biggest one-day gain since 2009 Friday after hitting 12-year lows a day earlier, as hopes of production cuts by the Organization of the Petroleum Exporting Countries fueled a rally.

The roller-coaster ride for crude oil kicked into high gear, as the price of West Texas Intermediate crude oil, the U.S. benchmark, rose 11.5% to settle at $29.23.

Brent crude, the global benchmark, rose 10.1% to $33.09.

The spike came after a United Arab Emirates Energy Minister suggested that OPEC members "are ready to cooperate on a cut," the Wall Street Journal reported Thursday.

That remark served as a beacon of hope for oil producers that have been crushed by the commodity's slide. WTI on Thursday hit its lowest closing mark since May 2003, according to the Oil Price Information Service.

A production cut by OPEC would help ease the global glut of petroleum that has been created by the market-share war in the Middle East, fresh output by U.S. shale producers and a tepid global economy marked by a slowdown in China.

[Kelvin Mace]

1. Hard to see this happening

SA wants Russia and U.S. frackers bleeding out. Iran will be bringing its oil onto the market soon and is unlikely to cut back.

[sharp_stick]

2. I don't know

it's going to be tough to get Iran and Venezuela to agree to any production cuts. The Saudis and UAE are in a bit of a pickle here, they have absolutely nothing else to bring in money and their economies are hurting pretty badly.

They engineered this low price in an attempt to bring the US and Canadian oil industries crashing down but they're proving to be a bit more resilient than they thought.

Personally, I love filling my tank up at these rates.

[Sen. Walter Sobchak]

3. OPEC can decided whatever they like,

Everyone will cheat because they need the revenue.