London, Jan. 6 (Reuters): World oil prices pulled back from two-year highs on Monday after the Opec cartel said it would make a hefty output hike to cover lost supplies from Venezuela.
Opec president Abdullah al-Attiyah said Opec would lift quotas by up to a million barrels-per-day to cool a rally that has lifted prices by a quarter in two months.
International benchmark Brent crude oil fell 82 cents to $ 29.95 a barrel, while US crude futures eased 36 cents to $ 32.72. Both markers are within a dollar of two-year highs.
“Prices are off a little after a big rise during Christmas and New Year,” said Richard Savage of Bank of America.
“With uncertainty over the Venezuelan strike and Opec’s response, I would expect volatile trade over the next few days,” he added.