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Oil Futures Settle Sharply Higher On Saudi's Pledge To Support Cuts

Crude oil prices rose sharply on Monday, riding on comments from Saudi Arabia that it would continue to support output cuts by OPEC and other producers.

Data showing an increase in oil imports by China last month, expectations that global central banks would step up stimulus to boost economic growth contributed as well to crude oil's uptick in the session.

West Texas Intermediate Crude oil futures for December ended up $1.33, or about 2.4%, at $57.85 a barrel.

On Friday, WTI Crude oil futures for December rebounded from early weakness and ended up $0.22, or about 0.4%, at $56.52 a barrel.

Recent data showing a drop in U.S. oil rig count for the third straight week and a larger than expected drop in U.S. crude stockpiles in the week ended August 30 supported oil's rise.

Saudi Arabia reiterated that it would support output cuts by OPEC and other producers to prop up prices under new Energy Minister Prince Abdulaziz bin Salman.

A Saudi official is reported to have said that there would be no shift in Saudi and OPEC policy on the output cuts and that Prince Abdulaziz would work to strengthen OPEC and non-OPEC cooperation.

Comments from Israeli Prime Minister Benjamin Netanyahu that Iran has a secret nuclear facility and his calling for action against the Middle Eastern nation too contributed to the rise in oil prices.

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