October 25, 2006	Wednesday	Shawwal 1, 1427

LONDON, Oct 24: Oil rose above $59 a barrel on Tuesday after the United Arab Emirates told buyers it will cut exports next month, tempering scepticism that Opec members will implement pledged cutbacks.

An industry source said the Abu Dhabi National Oil Company, the main UAE producer, had told customers it would cut all crude exports by about 5 per cent. The UAE pumps about 2.6 million barrels per day.

“Over the weekend we had the Saudis informing of cuts and now the UAE is doing the same,” said Olivier Jakob of Petromatrix. “We're getting confirmation that some of the cuts are for real.” US crude was up 29 cents at $59.10 a barrel by 1606 GMT.

It hit a 2006 low of $56.55 last week. London Brent rallied 24 cents to $59.45.

The UAE is due to reduce output by about 100,000 bpd as part of the Organisation of the Petroleum Exporting Countries’ deal last week to cut total production by 1.2 million bpd.

Top oil exporter Saudi Arabia told customers at the weekend it was cutting November supply.

But other members have yet to provide similar evidence. With oil still high by historical measures -- up from below $20 in January 2002 -- some doubt their commitment to cut.

“Opec adherence remains to be seen,” said Angus McPhail of investment company Alliance Trust.—Reuters