DUBAI – Saudi Arabia has cut oil production substantially, moving to fend off a growing overhang in world oil supply and defend prices well above $100 a barrel.



In the last two months of 2012, OPEC’s lead producer responded to slower demand by lowering supply by around 700,000 barrels per day (bpd), with output in December falling to around 9 million bpd, an industry source said.



News of the Saudi supply curbs helped push Brent up more than dollar to over $113 a barrel. Major customers of state oil company Saudi Aramco said the cuts were driven by lower demand. Kuwait and the UAE will not lower output.– Reuters