Oil prices rose Thursday on news Saudi Arabia cut its supply to the market in September, even though its overall production grew month on month, and on strong economic data from Europe and China.
Crude oil settled up $1.57 higher at $82.09 a barrel.
OPEC's largest producer pumped 9.7 million barrels per day in September, up from around 9.6 million bpd in August, an industry source said Thursday.
But the amount of crude the kingdom supplied to domestic and export markets fell to 9.36 million barrels, down from around 9.69 million barrels in August. Barrels not supplied to the markets are put into storage.
"I think this is a knee-jerk reaction," said Christopher Bellew, a broker at Jefferies in London. "Saudi Arabia has not cut its overall output."
The kingdom has previously sent signals that it is comfortable with markedly lower oil prices and that it is willing to maintain high supply levels to compete for market share.