Crude oil: OPEC cuts production by 500,000
barrels/day
Yesterday's OPEC meeting was a big
market-moving factor for the oil counter.
Registering a low of $61.375 per barrel, January crude oil futures recorded a high of $62.725
and closed marginally off the intra-day
high at $62.525. According to OPEC,
market fundamentals clearly indicate that there is more than ample crude supply and stock levels are
high. Further, OPEC opined that the
November output stabilised the market and
has decided to trim production by 500,000 barrels/day, effective February 1, 2007. Expect the
prices of crude to be firm with $60
forming a good base.