Tuesday, October 21, 2008

Oil rises to US$75 as OPEC eyes production cut

Oil prices rose to above $75 a barrel Tuesday in Asia as investors expected OPEC to try to halt a three-month slide in prices by cutting production quotas at least 1 million barrels a day.

Light sweet crude for November delivery rose 90 cents to $75.15 a barrel in electronic trading on the New York Mercantile Exchange by midday in Singapore. The contract gained overnight $2.40 to settle at $74.25.

Prices closed as low as $69.85 a barrel last week, down 53 percent from a record $147.27 on July 11.

"It definitely looks like a cut is in the cards," said Victor Shum, an energy analyst at consultancy Purvin & Gertz in Singapore.

"A cut of at least 1 million has been priced in. A cut much larger than 1 million could move prices higher."

The Organization of Petroleum Exporting Countries, which accounts for about 40 percent of global oil supply, plans to announce an output reduction at a meeting on Oct. 24 at its headquarters in Vienna, said the group's president, Chakib Khelil.

1 comment:

Greg said...

I hope that those fuel cell car are sold in a cheaper price so that we need not to be fully dependent to fossil fuel. By that time even fossil fuel reach US $ 1000 per barrel also wont affect our daily basis.