Oil Rises From 3-Year Low as OPEC Signals Plan to Cut

Friday, October 9, 2009

The Organization of Petroleum Exporting Countries intends to reduce oil output on December 17 in Algeria, Qatar’s Oil Minister said today.

The U.S. Energy Department releases its weekly report on fuel inventories later today.

“I’m very sure OPEC will cut on Dec. 17, it has to be at least 1 million barrels a day,” said Hannes Loacker, an analyst at Raiffeisen Zentralbank Oesterreich in Vienna. “Prices are at a very low level, well below the marginal cost of supply, so I don’t expect oil to drop too much.”


"There are much clearer signs that China is slowing, and this has caused the recent leg down in prices," said Mark Pervan, senior commodity strategist with ANZ Bank

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