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Oil prices climb
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November 9, 2001: 11:31 a.m. ET
Crude gains as Russia will likely cut production with OPEC.
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NEW YORK (CNNmoney) - Oil prices jumped for the second consecutive day Friday after Russia echoed proposals for production cuts made by members of the Organization of Petroleum Exporting Countries earlier this week.
U.S. light crude for December delivery climbed $1.13 to $22.30 per barrel Friday and Brent Sea crude for January delivery gained $1.07 to $21.50 per barrel.
Russia's Prime Minister, Mikhail Kasyanov, said six or seven Russian oil producers would propose cutting crude exports and the government would support the proposal.
Russia's move comes after several members of OPEC said the cartel will likely cut production by 1 million to 1.5 million barrels per day (bpd) at its Nov. 14 meeting. OPEC currently produces 23.2 bpd.
"The Russian statement is clearly bullish, as the market expectation of any support for OPEC from Russia has increased from its previous level of zero," said J.P. Morgan oil analyst Paul Horsnell.
Although it is not an OPEC member, Russia is the world's second-largest oil exporter after Saudi Arabia and this year it has lifted exports to more than 3 million bpd, accounting for more than 6 percent of world oil trade.
Global demand for oil has dropped in the past year and gasoline prices in the U.S. plunged 21.2 percent last month, more than offsetting the strong gains of 6.3 percent in September and 8.7 percent in August, the Labor Department reported.
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The October decline in the U.S. marked the largest drop in gasoline prices since a 22.1 percent decline in March 1986, and came as cheaper imported crude oil has forced overseas producers to slash prices. Crude oil prices have fallen because of slowing demand from weak economies in the United States, Europe and much of Asia.
OPEC has already sliced supply by 3.5 million bpd this year. A further 1.5 million reduction would cut output limits for 10 members, excluding sanctions-bound Iraq, to the lowest level since 1990.
-from staff and wire reports 
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