Crude Eases Back

Crude oil is a little easier this morning, paring back from yesterday's 9% gain, currently $1.79 lower at $52.71/barrel.

Crude rose sharply yesterday following European and US stocks higher, and was also boosted by the Citigroup bailout.

Still, motorists in the US, the world's largest energy consumer, drove 4.4 percent fewer miles in September even as gasoline prices dropped, the Federal Highway Administration said last week.

OPEC are due to meet on Nov. 29 in Cairo, and production cuts are likely to be on the agenda.

OPEC's decision to trim output by 1.5 million barrels a day at a meeting in Vienna last month failed to stem the decline in crude prices as the global economic slump slashed demand.

OPEC President Chakib Khelil said there would likely be no cut at the Nov. 29 meeting, but a reduction is widely expected at a second meeting scheduled for on Dec. 17 in Algeria.

A US Energy Department report due out later this week is expected to show crude stocks rising by about 1m barrels, analysts say.