What's Moving the Oil Markets?

•Global crude futures traded higher during European morning trading Friday, even after earlier trading saw ICE Brent sag to $42.01/barrel, its lowest level since January 6, 2005.

•"We're going to see a couple of weeks of range trading through to year-end. Traders want to protect their bonuses and their exposure," a market source said.

•Global oil supply continues to remain a contentious issue, following the heavy selling that has been observed the course of the week. "Given the rate at which we are selling off at, we shudder to think where crude oil prices will be when the boys from OPEC get together in twelve days time -- an eternity in our view," energy analyst Edward Meir said.

•Other participants have played down the role of OPEC in shoring up the price of oil. "The OPEC meeting is irrelevant. OPEC can't do anything about demand by adjusting the supply" a broker said.

Updated: December 5, 2008