Oil price rises to $71 on fears of OPEC output cut
The benchmark oil price rebounded to $71.01 on Friday on speculation that the OPEC crude producers' cartel could cut production at an emergency meeting next week, traders said.
By Agencies |
LONDON: The benchmark oil price rebounded to $71.01 on Friday on speculation that the OPEC crude producers' cartel could cut production at an emergency meeting next week, traders said.
Crude futures had tumbled yesterday and have plunged by more than six per cent over the week as fears of a global recession raised expectations of a prolonged slowdown to energy demand.
New York's main contract, light sweet crude for delivery in November, rose by $1.12 to $71.01 a barrel in electronic trade today.
The contract had tumbled $4.69 to 69.85 on yesterday, the first time the benchmark contract closed below the 70-dollar level since August 2007.
London's Brent North Sea crude for delivery in December rose 77 cents to 68.61 dollars a barrel today. The November contract expired on yesterday after diving to a 17-month low at 65.45.
OPEC said yesterday that it would hold an extraordinary meeting earlier than expected next Friday - instead of in November - to discuss the global financial crisis and its impact on the oil market.
"The threat of an OPEC cut at its meeting next week has lifted oil," said BetOnMarkets.com analyst David Evans in London today.
"Oil... has been in a tailspin as worries of a full-fledged recession intensifies. We believe that oil prices have hit their lowest and could only go higher from here," added the analyst.
The 12-nation Organisation of Petroleum Exporting Countries, which pumps about 40 per cent of global crude supplies, has not indicated whether production levels would be altered at its meeting.
Crude futures had tumbled yesterday and have plunged by more than six per cent over the week as fears of a global recession raised expectations of a prolonged slowdown to energy demand.
New York's main contract, light sweet crude for delivery in November, rose by $1.12 to $71.01 a barrel in electronic trade today.
The contract had tumbled $4.69 to 69.85 on yesterday, the first time the benchmark contract closed below the 70-dollar level since August 2007.
London's Brent North Sea crude for delivery in December rose 77 cents to 68.61 dollars a barrel today. The November contract expired on yesterday after diving to a 17-month low at 65.45.
OPEC said yesterday that it would hold an extraordinary meeting earlier than expected next Friday - instead of in November - to discuss the global financial crisis and its impact on the oil market.
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"The threat of an OPEC cut at its meeting next week has lifted oil," said BetOnMarkets.com analyst David Evans in London today.
"Oil... has been in a tailspin as worries of a full-fledged recession intensifies. We believe that oil prices have hit their lowest and could only go higher from here," added the analyst.
The 12-nation Organisation of Petroleum Exporting Countries, which pumps about 40 per cent of global crude supplies, has not indicated whether production levels would be altered at its meeting.
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