Monday, January 15, 2007

Crude Oil Lower Again...

The latest from the Dow Jones Newswire indicates the cartel may be taking a waiti and see approach. The Kuwaiti oil minister is quoted as saying, "We prefer to wait until Feb. 1 to take a look at the effect of OPEC's decision last month in Abuja to reduce overall production by 500,000 b/d,effective from Feb. 1, and members may meet at a later time if such a step doesn't maintain the level of oil prices." Crude has given back earlier gains and is down 31-cents at $52.67.

All I can say is that it's comical that press reports are characterizing market players as having "jitters" over a possible emergency production cut by the OPECers when they can't even adhere to cuts they've already agreed to (see last night's post). They pumped out almost 29 mln barrels in December and are supposed to be down to 25.8 mln in February... LMAO!

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