Brent, WTI add over $1 during session

Crude oil prices were up sharply on Thursday on rumors that the Organization of Petroleum Exporting Countries had reached an informal agreement on a production cut.  Saudi Arabia has already started cutting production and it is believed that Nigeria will cut its production by 5 percent beginning October 1.  November contracts for Brent crude added $1.32 to $63.54 per barrel in London, while West Texas Intermediate for November delivery was $1.01 higher to $63.97 on the New York Mercantile Exchange.

Meanwhile, natural gas prices dropped after new inventories data showed that US stockpiles were up by 77 billion cubic feet last week.  While the gains were slightly lower than had been expected, the rise indicates that inventories will be at 3.3 billion cubic feet by the end of October, a plentiful supply even if winter in the US is longer and colder than usual.  Nymex Henry Hub dropped nearly 22 cents to $5.45 per million British thermal units.