LONDON, Oct 29: Oil prices jumped more than four dollars on Wednesday as traders took their direction from an impressive rally on global stock markets ahead of an expected US interest rate cut.

New York’s main contract, light sweet crude for December delivery rose $4.18 to $66.91 a barrel and Brent North Sea crude for December soared 4.44 dollars to 64.73 dollars.The market had fallen on Tuesday despite warnings from Opec on further output cuts as traders focused on the negative fallout from a global credit crisis on energy demand.

However, prices rallied sharply on Wednesday ahead of a widely-expected interest rate cut by the Federal Reserve to boost the flagging US economy, dealers said.

“Crude futures were up ... as stock market sentiment was lifted on hopes of interest rate cuts,” said analyst Michael Davies at the Sucden brokerage in London.

“A significant cut ... could certainly boost sentiment and oil prices but ... it takes time for monetary easing to have an effect.” The comments by Opec about further possible production cuts also bolstered the market.

“Crude oil recovered, not only on rising stock markets but also on the statement ... (that Opec) might meet again before December to cut production quotas further,” said Dresdner Kleinwort analyst Peter Fertig.

Opec ministers agreed at an emergency meeting in Vienna on Friday to slash output by 1.5 million barrels a day to 27.3 million bpd from November 1, as the cartel sought to shore up prices.

Oil prices are down by more than 50 per cent since July’s record highs above $147 on growing concern that demand will be hit by slowing global growth.

On Monday, oil prices had plunged to $59.02 in London and $61.30 in New York — which were the lowest points for around 17 months.—AFP