Oil extends gains above $72, eyes OPEC
Oil extended gains and hovered above $72 a barrel on Monday, bolstered by expectations OPEC could cut output at an emergency meeting this week to shore up prices.
PERTH: Oil extended gains and hovered above $72 a barrel on Monday, bolstered by expectations OPEC could cut output at an emergency meeting this week to shore up prices.
Oil prices have fallen more than 50% from their peak above $147 a barrel hit just three months ago and touched a 16-month low of $68.57 last week amid fears that a possible US recession would slow demand further.
NYMEX crude for November delivery CLc1 rose 40 cents to $72.25 a barrel by 2247 GMT, after rising as much as $1.34 earlier at the start of electronic trading. The contract settled $2 higher on Friday at $71.85.
London Brent crude LCOc1 rose 40 cents to $70 a barrel. OPEC oil producers may cut oil supplies in two rounds, one when they meet this week in Vienna and a second later on, to drain an oil supply surplus off the market and firm up prices, the group president said on Sunday.
Iran's OPEC governor Mohammad Ali Khatibi was quoted as saying Tehran wants OPEC to cut output by 1-3 mn barrels per day (bpd) because of the financial crisis.
Pressure is mounting within OPEC to cut supplies after the financial crisis and high fuel prices earlier this year eroded demand growth in the United States and other big consumer nations and sent oil prices into a tailspin.
The Organisation of the Petroleum Exporting Countries (OPEC) has called an emergency meeting on Oct. 24 in Vienna to discuss the impact of economic weakness on oil markets.
Several OPEC members have said over the weekend that the acceptable price for oil should be between $70 and $90 a barrel.
The head of the European Central Bank on Sunday pledged to do whatever it takes to restore confidence to rocky financial markets, as governments worldwide pour cash into stricken banks hit by the worse economic crisis since the Great Depression.
Oil prices have fallen more than 50% from their peak above $147 a barrel hit just three months ago and touched a 16-month low of $68.57 last week amid fears that a possible US recession would slow demand further.
NYMEX crude for November delivery CLc1 rose 40 cents to $72.25 a barrel by 2247 GMT, after rising as much as $1.34 earlier at the start of electronic trading. The contract settled $2 higher on Friday at $71.85.
London Brent crude LCOc1 rose 40 cents to $70 a barrel. OPEC oil producers may cut oil supplies in two rounds, one when they meet this week in Vienna and a second later on, to drain an oil supply surplus off the market and firm up prices, the group president said on Sunday.
Iran's OPEC governor Mohammad Ali Khatibi was quoted as saying Tehran wants OPEC to cut output by 1-3 mn barrels per day (bpd) because of the financial crisis.
Pressure is mounting within OPEC to cut supplies after the financial crisis and high fuel prices earlier this year eroded demand growth in the United States and other big consumer nations and sent oil prices into a tailspin.
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The Organisation of the Petroleum Exporting Countries (OPEC) has called an emergency meeting on Oct. 24 in Vienna to discuss the impact of economic weakness on oil markets.
Several OPEC members have said over the weekend that the acceptable price for oil should be between $70 and $90 a barrel.
The head of the European Central Bank on Sunday pledged to do whatever it takes to restore confidence to rocky financial markets, as governments worldwide pour cash into stricken banks hit by the worse economic crisis since the Great Depression.
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