Crude oil is up 4%

Crude oil prices rallied more than 4% on Tuesday morning.

West Texas Intermediate crude oil futures rose more than 4% in New York to as high as $US4823 per barrel, the highest since early September.

The Energy Information Administration (EIA) released its latest short-term outlook today. The EIA estimated that US oil production fell by 120,000 barrels per day in September. The EIA maintained its forecast for total US oil production to fall through mid-2016 before resuming its build again.

In other oil-related news, OPEC Secretary-General Abdullah al-Badri said that the 12-member oil cartel and non-members should collaborate to reduce the supply glut, according to Reuters.

Crude oil inventories from the American Petroleum Institute are due around 4:30 p.m. ET today, and from the EIA on Wednesday morning.

Also, this week, House lawmakers will vote on whether to lift the 40-year ban on US crude oil exports.

Brent crude oil, the international benchmark, was up about 4%, near $US51.45 per barrel.

Here’s a chart showing the jump in crude oil on Tuesday:

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