Oil Prices May Rise:(play the market)

Discussion in 'Commodity Futures' started by bapunagar, Oct 6, 2006.

  1. Crude oil, gasoline, heating oil, diesel and natural gas supplies last week were above the five-year average for the period, the Energy Department said on Oct. 4. “This shows that petroleum Refinery Company’s are taking as much as possible advantage of this price fall in the market”

    Crude oil fell on speculation Saudi Arabia, the world's largest producer, hasn't agreed to participate in any output cut by the Organization of Petroleum Exporting Countries. ``Saudi Arabia seems not to agree on any cutback plan until oil falls below $55 a barrel,'' said Makoto Takeda, an energy analyst at Bansei Securities Co. in Tokyo.
    OPEC President Edmund Daukoru said yesterday there is no formal agreement among member countries to lower output. This week, he urged members to lower production before the group's next scheduled meeting in December, and started the process with a cut from his own country Nigeria, if any further fall.
    Organization for Petroleum Exporting Countries {OPEC} members favored for the production cut to sustain prices. Fifteen of 34 analyst trades and brokers said that prices will gain next week but majority of the OPEC members supported for reducing output by 1 million barrels a day or 3.6%. Nigeria and Venezuela's intention to voluntarily cut output to defend prices, they said last week they will cut output by a combined 170,000 barrels a day if it continues in the same manner. ``The potential for a wider cut may include Kuwait, Iran and Libya, that should boost supply-side concerns.'' Crude oil for November delivery has slipped $2.88 or 4.6% by reaching to $60.03 a barrel in the first four days of the trading this week on the New York Mercantile Exchange. Prices touched $57.75 a barrel on Oct 4th which is the lowest since Feb 16.
    Saudi Arabia, Libya and Algeria may also make production cuts, said Edmund Daukoru, OPEC's president. OPEC Threat that “Even if OPEC ramps up their threat of a production cut, that may not be enough to push this market higher” threats or actual plans by OPEC to cut production should provide support for prices