Crude Rebounds As OPEC Cuts Production
Crude oil bounced higher this morning after hitting a five month low of $101.74 last night after a surprise decision by Opec to cut daily supplies by 520,000 barrels.
After a marathon meeting of the producers' cartel' which ended at 3am in Vienna, Chakib Khelil, president and Algerian's Energy Minister, said he did not expect the oil price to increase as a result of the cut to supplies.
Most analysts had expected no change in output.
It will be interesting to see if prices resume their downwards trend as the cartel is currently thought to be producing about 790,000 barrels per day (bpd) MORE than its official ceiling of 29.67 million bpd. A cut of 520,000 bpd would therefore merely bring Opec's output more in line with its official ceiling.
In light of the decision stocks data from the US due out later today will be scrutinised even more closely than normal.
At 9am London time October crude was $104.03/barrel.
After a marathon meeting of the producers' cartel' which ended at 3am in Vienna, Chakib Khelil, president and Algerian's Energy Minister, said he did not expect the oil price to increase as a result of the cut to supplies.
Most analysts had expected no change in output.
It will be interesting to see if prices resume their downwards trend as the cartel is currently thought to be producing about 790,000 barrels per day (bpd) MORE than its official ceiling of 29.67 million bpd. A cut of 520,000 bpd would therefore merely bring Opec's output more in line with its official ceiling.
In light of the decision stocks data from the US due out later today will be scrutinised even more closely than normal.
At 9am London time October crude was $104.03/barrel.
