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Here’s why oil just scored its biggest one-day rally of 2017


OPEC members can’t take all the credit for oil’s rally Tuesday, which saw prices score their biggest single-session gain of the year.

News of cuts to oil-and-gas exploration spending and signs of a potential slowdown in U.S. output also played roles in the bullish shift in sentiment.

On Tuesday, September West Texas Intermediate crude CLU7, +0.84  rallied by $1.55, or 3.3%, to settle at $47.89 a barrel on the New York Mercantile Exchange, marking the strongest single-day climb since late last year, according to FactSet data.

Prices continued to climb in electronic trading late Tuesday, topping $48 a barrel, after data from an industry group reportedly showed a hefty drop in weekly supplies for U.S. crude. Early Wednesday, oil prices were extending those gains.

On Monday, Saudi Arabia said at a meeting in Russia that it would cut August exports to 6.6 million barrels a day—a million barrels less than a year earlier. Separately, Nigeria, which isn’t part of the production-cut agreement led by the Organization of the Petroleum Exporting Countries, also promised to limit its daily production to 1.8 million barrels.

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