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[Kizen]

Oil prices rebounded on Thursday than expected after Saudi Arabia declared its support for a 1m-barrel-a- day cut in actual output by the Organization of the Petroleum Exporting Countries at the cartel’s meeting in Qatar.

The Saudi Arabian oil minister signaled the markets that there may be further cut in production in December. All these changes seems like there is further scarcity in the markets. The oil price may touch $64 per barrel by next week. OPEC is probably moving on the right path to protect the markets with the support of the other members. There are interesting price changes ahead to entertain oil investors.

Full report..

[patanx]

Oil eased, but held above $61 on Thursday after a surprise drop in U.S. crude stocks and mounting evidence of OPEC cuts triggered the biggest one-day gain in seven months the previous session.

U.S light crude was down 11 cents at $61.29 a barrel, after a 3.5 percent surge the day before, the market's sharpest one-day gain in seven months. London Brent crude was down 38 cents at $61.67 a barrel.
U.S. prices spiked to $61.65 on Wednesday, their highest since Oct. 2, after U.S. data showed crude stocks in the world's top consumer fell last week. The market had expected them to rise.

The drop in crude inventories followed the closure of the Louisiana Offshore Oil Port, the country's biggest oil import facility, for three days last week.

Christopher Bellew, a broker at Bache Financial in London, said inventory levels were very comfortable, in spite of the unexpected fall.

If, however, the Organization of the Petroleum Exporting Countries (OPEC) honors its commitment made last week to reduce output by 1.2 million barrels per day, inventory levels would decline more significantly.

Traders have questioned OPEC's ability to enforce output discipline, but increasing evidence of the producer group's determination to prop up prices has helped the market to recover from a 2006 low of $56.55 a barrel for U.S. crude hit last week.

Leading OPEC member Saudi Arabia and the second biggest OPEC producer Iran have informed their customers of reduced November supplies, as has the United Arab Emirates.
In addition, Nigeria will extend the 5 percent curbs it imposed voluntarily this month, a Nigerian official said on Wednesday.

Colder weather in the U.S. Northeast, the United States' biggest heating consumer, has also helped the price recovery.
Weather forecast Meteorlogix has forecast below normal temperatures over the next three to five days.

[sunabeach]

"Saudi Arabian oil minister has announced that they are trying to balance the disequilibrium between the supply and demand. Abu Dhabi and Venezuela have joined with OPEC to cut production on Wednesday. This decision has lead to decline in the US crude and oil product inventories".


Wow That worked fast. Cuts are announced and wa la US inventory figures drop. Kind of like how the price went down $1 today, not up. Hmmmm.