Opec Decided November Beware

Discussion in 'Commodity Futures' started by bapunagar, Oct 23, 2006.

  1. After dropping to the year low on Oct 20th drop by .9% reaching to $57 a barrel oil prices got a little charged up in New York. The Organization for Petroleum Exporting Countries to cut production larger than expected. Oil prices gained sooner after OPEC meeting on Oct 19, agreement to cut output has been made because of the speculation agreement by the members such as Saudi Arabia and Kuwait wont be enough to pare global inventories as the US Crude supplies are 14% more than the five years average. Saudi Arabia also intimated Japan refinery to expect lower shipment in November. Crude oil for December delivery fell as much as $1.07, or 1.8 percent, to $58.26 a barrel in after-hours electronic trading on the New York Mercantile Exchange.

    OPEC agreed to cut output to 26.3m barrels a day, if fully implemented, on November 1st. Saudi Arabia, the world’s biggest oil producer, warned a further production cut of 0.5m b/d could be made in December.

    The U.S. gasoline pump price fell eight cents in the past two weeks to $2.20 a gallon, the lowest this year. Prices for regular gasoline have declined 82.5 cents from a record average $3.025 a gallon. Heating oil for November fell as much as 1.85 cents, or 1.1 percent, to $1.6615 a gallon in after-hours trading on the New York Mercantile Exchange. It was at $1.6796 a gallon

    play the market...