Oil prices rebound on OPEC's decision

Oil prices gained Tuesday as the secretary general of the Organization of Petroleum Exporting Countries (OPEC) said they may cut the production targets next year.

OPEC's secretary general Abdalla El-Badri said Tuesday that the group may trim its output quota next year by about 500,000 barrels per day. The cartel's 12 member countries agreed at their last meeting in June on the production ceiling at 30 million barrels per day.

OPEC cut the global crude demand expectation in its Monthly Oil Market Report last Wednesday. World oil demand growth in 2014 is expected to reach 1.05 million barrels per day (mb/d), following a downward revision of around 50,000 barrels per day, mainly due to the weaker-than-expected performance of the OECD members. In 2015, world oil demand is forecast to increase by 1.19 mb/d, as an upward revision in the non-OECD region was offset by slower OECD growth.

The strike in Nigeria also supported the crude prices. Report said workers at Nigerian National Petroleum Corp. began an strike that may disrupt the country's crude output.

The U.S. central bank is holding a two-day policy meeting starting Tuesday. The meeting has drawn great market attention, as Fed officials are expected to shed more light on the timing of the first interest rate hike.

Light, sweet crude for October delivery moved up 1.96 dollars to settle at 94.88 dollars a barrel on the New York Mercantile Exchange.

While Brent crude for November delivery gained 1.17 dollars to close at 99.05 dollars a barrel.