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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: GraceZ who wrote (21670)	1/18/2005 2:47:49 PM
From: Chispas	Respond to of 116555

Oil turns lower ... ... ... ... ... ... ... ... ... ... ... ... {Grace, OPEC just made a '360', amazing !) Crude market responds to report that OPEC ministers oppose production cuts at high prices. January 18, 2005: 1:42 PM EST NEW YORK (CNN/Money) - Oil prices turned lower at midday Tuesday after a report quoted ministers from the Organization of the Petroleum Exporting Countries (OPEC) as saying production would not be cut if prices remained near the $50 a barrel range. U.S. light crude for February delivery lost 48 cents a barrel to $47.90 on the New York Mercantile Exchange. In London, Brent dipped 4 cents to $44.99. Dow Jones quoted senior OPEC delegates from two of the world's top oil producers as saying there is no justification for cutting production if prices remain at this level. "OPEC has a history of trying to jawbone the market," Phil Flynn, a market analyst at Alaron Trading in Chicago, told CNN/Money. "It appears OPEC is trying to take a little steam out of the rally and keep prices under control." Flynn said OPEC was trying to keep oil in the $40s range, as the world economy is seen capable of paying for $40 oil. But OPEC is nervous about $50 a barrel oil as it could eat into economic growth and in-turn hurt oil demand. OPEC is scheduled to meet January 30 to set production quotas. Adding to the feeling that OPEC will keep pumping at current levels was a report Tuesday from the International Energy Agency (IEA)saying OPEC may even have to increase production to offset supply disruptions in other parts of the world. Demand for OPEC oil will be 500,000 barrels per day (bpd) higher at 28.6 million bpd in the first quarter, as oilfield disruptions in North America and the North Sea reduce non-OPEC supply, the IEA said. Oil jumped more than a dollar earlier Tuesday, surpassing $49 a barrel, as a cold front pushed into the Northeastern U.S., dropping temperatures 15-22 Fahrenheit below normal. The cold weather increases demand for heating oil in the world's largest heating oil market. Top of page -- Reuters contributed to this report money.cnn.com