What's Moving the Oil Markets?

What's Moving the Oil Markets?

•Global crude futures in London and New York extended Thursday's gains as reaction to the announced OPEC cuts from actual production took hold. Prices were also supported by the comments from the Saudi oil minister for a possible further output cut in December.

•The front-month ICE December Brent futures contract was trading 26 cents higher at $61.15 per barrel with WTI for November delivery trading 34 cents up at $58.84 per barrel. ICE WTI for December was 33 cents higher at $60.83 per barrel.

•The comments by Saudi Arabia almost implied that the recent cuts are not enough hence the December statement," said a Bache Financial broker. Late last night, OPEC confirmed that the cartel would cut by 1.2 million barrels per day from the actual September volumes.

•Despite the recent price increase, brokers said that prices remained on a downward trend with supply outstripping demand in both crude oil and products.

Updated: 10/20/06

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