US oil price gains as traders buy dip

New York, Dec 15 (IANS) The US oil price pared earlier loses on Monday as traders started to buy in after the sharp decline of last week.

The US oil price rebounded after dipping below $35 in the morning session as some traders bought back their short positions, Xinhua news agency reported.

Oil prices have dropped significantly since the he Organisation of the Petroleum Exporting Countries (OPEC) December decision to keep crude production pumping at current level in the already-oversupplied market.

The cartel’s output is accounted for around 40 percent of the global crude output.

In November, OPEC production rose by 230,000 barrels per day from the previous month to average 31.70 million barrels per day, according to OPEC’s monthly oil market report released on Thursday.

The West Texas Intermediate for January delivery moved up 69 cents to settle at $36.31 a barrel on the New York Mercantile Exchange, while Brent crude for January delivery decreased 1 cent to close at $37.92 a barrel on the London ICE Futures Exchange.

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