According to Bloomberg :
Sept. 27 (Bloomberg) — Crude oil rose in New York on a report that OPEC President Edmund Daukoru said the group is discussing measures to stem further price falls this year.
“Something needs to be done to steady the price,” Daukoru said yesterday in an interview with Reuters in Abuja, Nigeria, when asked whether the Organization of Petroleum Exporting Countries will cut output at its next ministerial meeting in December. Members are talking about possible action, he said.
“It only takes a comment from OPEC that they’re not happy,” said Rowan Menzies, a commodities analyst at Commodity Warrants Australia Pty. in Sydney. “Then people start thinking that a potential decline in output may be happening in December.”
Crude oil for November delivery rose as much as 31 cents, or 0.5 percent, to $61.32 a barrel in after-hours electronic trading on the New York Mercantile Exchange. The contract was at $61.20 at 11:12 a.m. Singapore time.
Yesterday, oil fell 44 cents, or 0.7 percent, to $61.01 on expectations that a U.S. government report today will show fuel stockpiles in the country, the world’s biggest energy consumer, extended more than a month of gains.
Oil reached a six-month low of $59.52 on Sept. 25. Prices have fallen 22 percent since reaching a record $78.40 on July 14 as U.S. stockpiles rose and a United Nations deadline for Iran to stop its nuclear research passed without sanctions being imposed.
Oil’s Slump
The oil price is “very low and it’s not good for investors,” Daukoru said after a meeting with diplomats in Abuja, Reuters reported.
“OPEC is certainly not going to be happy at $60, it takes a lot of money away from them that they were probably enjoying,” Menzies at Commodity Warrants said.
A U.S. Energy Department report will probably show that gasoline supplies climbed for a sixth time last week, rising 700,000 barrels, according to the median of 11 estimates in a Bloomberg News survey. Supplies of distillates, including heating oil and diesel, probably gained another 2.5 million barrels, according to the survey.
“I’m betting that we’ll see a little build across the board,” said Mark Waggoner, president of Excel Futures Inc. in Huntington Beach, California. “We do have high stockpiles. As long as they remain around 11 and 12 percent above average, that’s going to put a cap on prices.”
- The OPEC is giving out very strong signals about Dec 14 Meeting…be ready on that date!
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