What's Moving the Oil Markets?

What's Moving the Oil Markets?

•ICE Brent futures recovered after an early dip on Wednesday as the market awaited firm action by OPEC on a proposed 1 million b/d production cut following days of inconclusive negotiation. The front month Brent contract earlier fell through the crucial $59/barrel support level, indicating weak technicals, market players noted.

•Market players are waiting to see if OPEC reaches an agreement to slash its 28 million b/d ceiling by 1 million b/d. OPEC has yet to make a formal announcement on its agreed cuts. Qatari oil minister Abdullah al-Attiyah said Wednesday there was consensus for a cut of 1 million b/d from actual production and an announcement would be made in two to three days or at an emergency meeting. He said Qatar backed a cut.

•US commercial crude inventories are expected to show a build of 1.8 million barrels when the weekly data is released Thursday by the EIA and API, with the ongoing refinery turnaround season crimping demand.

Updated: 10/11/06

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