Oil surges on signs of US supply cuts

London

WORLD oil prices surged last week after recent heavy losses, aided by signs of tightening US supplies, according to analysts.

Coffee prices in New York also recovered on indications of possible tightness for Brazilian supplies, while gold dropped further as the shine was taken off its status as a haven following positive US jobs figures.

Crude futures shot higher in volatile trading as data revealed production cuts that could curb the supply glut. The Baker Hughes North America rig count fell sharply in the week to Jan 30, dropping by 128 rigs to 1,937. That compared with 2,393 a year ago.

Deep cuts in capital spending by major oil companies, inclu…