What's Moving the Oil Markets?

•Global crude futures leapt on Thursday as OPEC agreed to cut crude production by a further 500,000 b/d, according to an OPEC delegate as ministers of the oil cartel met in Abuja Thursday.

•A delegate said there was agreement that the cut should be 500,000 b/d and that it would "most likely" be implemented from the beginning of Feb. OPEC agreed in Doha in October to remove 1.2 million b/d of physical oil from world markets from the beginning of November.

•While market players were primarily focused on the OPEC meeting, traders earlier in the day said that latest US stats data had also led to stronger crude futures. The EIA reported a 4.3 million bbl drop in US crude stocks, higher than the 1.6 mill bbl draw projected. A marked drop in US imports was unable to offset an unexpected decline in throughputs. Refinery utilization fell 1.4% to 89.1%, the EIA said.

•Milder temperatures across the Atlantic Coast are expected to prevail a while longer, according to Accuweather. For the upcoming weekend, temperatures of up to 18 degrees Fahrenheit, above-average for this time of the year, can be expected in Pittsburgh.

Updated: 12/14/07