What's Moving the Oil Markets?

What's Moving the Oil Markets?

•- ICE Brent futures rose over half a dollar on Wednesday on further hints from OPEC that the oil group is concerned about the low price of crude harming investment and US stock data, brokers said.

•- Barclays Capital's Kevin Norris said in a report that funds were wary of being caught short of oil should crude prices slip too far, forcing OPEC's hand leading to a cut in crude output as the ceiling is lowered. The report cited OPEC president Edmund Daukoru who said Tuesday that oil prices were very low and harming investment and that there were a number of factors pointing to a soft market in 2007.

•- Following the short rally in Brent at the start of the week, the market still remained bearish on technical indicators. Front-month Brent remained congested between $60/barrel and $61.50/barrel, twice having failed to hold below $60/barrel.

•- One broker expected the US data release could see Brent slip below $60 and hold.

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