Oil up, stockpiles and OPEC credibility down
04.12.2008 12:02
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- Source: cbc.ca
Oil prices edged up marginally on Wednesday after U.S. stockpiles showed a surprising decline in November and Qatar's oil minister hinted that new OPEC production cuts were imminent. A barrel of crude oil for January delivery rose 90 cents to $47.86 US in morning trading on the New York Mercantile Exchange. The increase came after the U.S. Department of Energy said oil inventories fell by 400,000 barrels in the latest week. Crude watchers had expected crude stockpiles to rise by two million barrels. Industry experts often use inventory levels as a proxy for crude demand. Qatar's oil minister said this week that the Organization of Oil Exporting Countries would probably look at reducing member output further when the group meets in Algeria on Dec. 17. “For sure we will cut in Oran [Algeria],” Abdullah al-Attiyah told Reuters at a petrochemical conference in Dubai. “I don't know by how much. We will discuss it there.” OPEC has been struggling with ways to provide some support for a plunging world oil price. What peaked at $147 during the summer is now almost $100 lower as the global economy slowed demand and speculators stopped plying their trade. The cartel wants a per-barrel value high enough to maximize revenue but not so high as to choke off demand. Saudi Arabia, OPEC's biggest producer, is eyeing a price somewhere in the range of $75 a barrel as ideal. Cuts that don't draw bloodThe organization, however, faces problems in promising to cut output and then getting its members to follow though on those reductions. Back in November, OPEC pledged to reduce production by 1.5 million barrels per day. So far, however, member nations have chopped output by only 66 per cent of that target. Supply from OPEC fell to 31.2 million barrels per day in November from 32.17 million barrels a day in October, according to a recent survey of oil firms, OPEC officials and analysts. Saudi Arabia and other less-populous nations, can meet their smaller quotas, experts said. Poorer countries with larger populations, such as Nigeria and Indonesia, however, need to keep their black gold flowing to export markets in order to maintain their market share and to keep their public treasuries as full as possible. Consumer HeadlinesCanadians eating less lunch meat after listeriosis outbreak: studyLast summer's listeriosis outbreak has caused Canadians to re-examine their eating habits, a University of Guelph survey suggests.Oil hits near 4-year low on weak economic newsOil prices sank Thursday to lows last seen nearly four years ago as more bleak news from the world's largest economy boosted views that crude could tumble below $40 US by the end of the year.2008 housing sales to decline 15%: ReMaxThe number of homes sold in 2008 in Canada is expected to total 440,000, a 15 per cent decrease from the previous year, ReMax said in its sales forecast Wednesday.Canada risks being 'dumping ground' for dangerous toys: criticsCanada risks becoming a dumping ground for plastic toys that have been banned in the U.S. and Europe because they contain a toxic substance that can be dangerous to babies and young children, critics charge.Reebok-CCM recalls hockey helmets for safety hazardReebok-CCM is withdrawing hockey helmets sold in Canada and the U.S. because the chinstraps can unexpectedly unfasten, creating a neck and head injury to users. Consumer Life FeaturesFOODConsumer tipsHow to shop for your family without breaking the bankECONOMYGift cardsThe lure of plasticSAFETYRecalls and AdvisoriesBLOGFood BytesA Renaissance foodieWORKING LIFEMalcolm GladwellCOMM-ODDITIESHolidayUndercover agents to fine salons serving holiday cheerPeople who read this also read …
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