Today Reuters reported that most OPEC members are in favor of a cut in oil output to combat excess supplies and to ensure prices stay above $60 a barrel. “Iran, like most OPEC members, does not consider an oil price of less than $60 a barrel as appropriate,” said the Oil Ministry’s news Web site.
U.S. heating demand is expected to be nearly 27 percent below normal this week, with warmer temperatures in most regions east of the Rockies, the National Weather Service said on Monday, which means fuel inventories are likely to remain ample.
track much farther north than usual, which will keep any snow in Canada, while sweeping mild air throughout the northern Plains on gusty, westerly winds. The air will turn a little bit colder across the region, but still not as cold as what you typically see across this area during the month of December.
So, besides the considerable supply surplus over demand and warmer temperature, the weakening dollar which reduces OPEC’s purchasing power from dollar-denominated oil is another factor that could push OPEC to take further action to stem a 22 percent price slide since a record of over $78 in July.
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December 12th, 2006 by financetwitter
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