Oil rises 6.7pc as OPEC cuts exports

OIL prices rose in New York after an OPEC member sharply cut exports, raising the prospect of tighter supplies early next year.

OPEC severely curtailing supply is seen as one ingredient for a recovery in oil prices, along with a bottoming out of global demand. The market has seen little sign of the latter, with recent economic indicators ranging from US unemployment claims to Chinese imports pointing to a deepening economic downturn.

A rebound is unlikely to be dramatic, even with the beginnings of an economic turnaround or tighter supplies, forecasters have made clear over the last month.