Crude oil declines on speculation OPEC may increase production
Wednesday, 5 December 2007
LONDON, Dec 4 (Bloomberg): Crude oil fell, extending earlier declines, after an OPEC delegate said the group would discuss a production increase at its meeting tomorrow.
The Organisation of Petroleum Exporting Countries (OPEC), which is convening in Abu Dhabi, will consider lifting output by 500,000 barrels a day, according to an official who declined to be identified. The 12-member group supplies more than 40 per cent of the world's oil.
OPEC "will go ahead with a 500,000 barrel per day increase,'' Edward Meir, an analyst at MF Global Ltd in Connecticut, said in a report today. ``However, the decision will come down to the wire, and much will ride on where prices are.''
Crude oil for January delivery fell as much as 96 cents, or 1.1 per cent, to $88.35 a barrel on the New York Mercantile Exchange, trading for $88.46 at 9:53am in London.
Oil rose 60 cents, or 0.7 per cent, to $89.31 a barrel yesterday, leaving prices 9.6 per cent below the record $99.29 reached on Nov 21.
Twenty-three of 42 analysts, or 55 per cent, expect OPEC members to maintain production at current levels, according to the news agency survey.
The Organisation of Petroleum Exporting Countries (OPEC), which is convening in Abu Dhabi, will consider lifting output by 500,000 barrels a day, according to an official who declined to be identified. The 12-member group supplies more than 40 per cent of the world's oil.
OPEC "will go ahead with a 500,000 barrel per day increase,'' Edward Meir, an analyst at MF Global Ltd in Connecticut, said in a report today. ``However, the decision will come down to the wire, and much will ride on where prices are.''
Crude oil for January delivery fell as much as 96 cents, or 1.1 per cent, to $88.35 a barrel on the New York Mercantile Exchange, trading for $88.46 at 9:53am in London.
Oil rose 60 cents, or 0.7 per cent, to $89.31 a barrel yesterday, leaving prices 9.6 per cent below the record $99.29 reached on Nov 21.
Twenty-three of 42 analysts, or 55 per cent, expect OPEC members to maintain production at current levels, according to the news agency survey.