Oil still undecided where to lead??

**intelligent** Mon Dec 11, 2006 5:47 am

Oil still undecided where to lead??
The Organization for Petroleum Exporting Countries will be meeting on 14th December 2006 in Nigeria, as everyone is expecting a cut in the oil output since the 11 member countries of OPEC want to stabilize oil prices after it fell from a peak $78 a barrel in July to below $60 a barrel in October.

Prices however, have been hovering between $62 - $63 a barrel since last week and the prices have been inching upwards due to two reasons, one being the OPEC’s possible cut and the other being the threats of further attacks by militants on oil facilities in Nigeria after a raid on an export terminal in which four foreign workers were kidnapped.

But I feel that oil prices may rise further since the northern hemisphere is now entering a severe cold spell , even though there is still good inventory with the US, in fact the US stockpiles rose 14 percent more than the average. But this is the wrong time when the OPEC would be cutting the oil production bringing more trouble and oil is likely to range between $62 - $64 a barrel.

**patanx** Mon Dec 11, 2006 2:00 pm

Oil prices eased below $62 Monday, extending last week's losses, as concern over brimming global fuel inventories offset a likely 2nd supply cut by OPEC and news of deepening Saudi export curbs.

Light, sweet crude slipped 13 cents to $61.90 a barrel. London Brent crude traded up 15 cents at $62.35.

The Organization of the Petroleum Exporting Countries (OPEC) meets on Thursday in Nigeria. OPEC agreed to lower output by 1.2 million barrels per day from Nov. 1.

On Friday, OPEC President Edmund Daukoru said he favored a further reduction to counter hefty stockpiles, particularly in the United States, where crude inventories are at the highest level for this time of year since 1993.

OPEC's acting secretary-general, Mohammed Barkindo, said on Saturday that the global oil market is oversupplied by 600,000 to 700,000 barrels per day (bpd) but stopped short of saying OPEC would cut production at the Abuja meeting.

However, Saudi Arabia, whose powerful minister Ali al-Naimi has also cited oversupply, appeared to send the strongest signals yet that a 2nd cut was in the offing by telling major Asian refiners that it will reduce their supplies next month.

State oil firm Saudi Aramco has told Japanese, South Korean and Taiwanese refiners that it will cut January crude supplies to 8% to 9% below their contracted annual volumes, deeper than the 4% to 5% curbs it imposed in December.

So as you can see, Oil is going up, for sure... OPECis making sure for Crude Oil to rise, even if it has to cut production from countries that don't want to reduce it.

**patanx** Tue Dec 12, 2006 2:58 pm

OPEC is driving Crude prices up
Oil edged higher on Tuesday, supported by the possibility that OPEC would agree to a supply cut at its meeting in Nigeria on Thursday.

U.S. crude prices traded 16 cents higher at $61.37 a barrel in electronic trade after losing 81 cents on Monday. London Brent crude gained 12 cents to $61.96 a barrel.

Ministers from the Organization of Petroleum Exporting Countries have sent mixed signals ahead of the meeting.

A narrow majority of OPEC members have said they are leaning towards a cut of at least 500,000 barrels per day (bpd) to counter rising fuel stocks in the world's top consumer the United States. Crude inventories there have reached their highest level for this time of year since 1993.

But with oil above $60, some ministers are reluctant to take any action that could drive prices higher and accelerate economic slowdown in the United States.

But price hawk Iran said on Tuesday most OPEC members are in favor of a cut to combat excess supplies.

This means we should not expect prices to go down any more than US$ 62 a barrel, cause in that case OPE will continue to cut production until the Crude reaches a price around the US$63.

**ffreedom** Tue Dec 12, 2006 7:03 pm

Re: OPEC is driving Crude prices up
I wonder what the point is posting these short-term news every day. These news are in every media and you really don't need to post it here. It would be more interesting if you could draw some insightful conclusions based on these news. Otherwise these are just noise.

patanx wrote: Oil edged higher on Tuesday, supported by the possibility that OPEC would agree to a supply cut at its meeting in Nigeria on Thursday.

U.S. crude prices traded 16 cents higher at $61.37 a barrel in electronic trade after losing 81 cents on Monday. London Brent crude gained 12 cents to $61.96 a barrel.

Ministers from the Organization of Petroleum Exporting Countries have sent mixed signals ahead of the meeting.

A narrow majority of OPEC members have said they are leaning towards a cut of at least 500,000 barrels per day (bpd) to counter rising fuel stocks in the world's top consumer the United States. Crude inventories there have reached their highest level for this time of year since 1993.

But with oil above $60, some ministers are reluctant to take any action that could drive prices higher and accelerate economic slowdown in the United States.

But price hawk Iran said on Tuesday most OPEC members are in favor of a cut to combat excess supplies.

This means we should not expect prices to go down any more than US$ 62 a barrel, cause in that case OPE will continue to cut production until the Crude reaches a price around the US$63.

**intelligent** Wed Dec 13, 2006 6:12 am

Though its there in media, but still making that news available in the blogs is a good thing.

I feel that OPEC will not cut the supply of oil in its next meeting in nigeria--

But lets see what it says??