Newspaper article THE JOURNAL RECORD

OPEC Hopes Cuts Salvage Devastated Oil Market

Newspaper article THE JOURNAL RECORD

OPEC Hopes Cuts Salvage Devastated Oil Market

Article excerpt

VIENNA, Austria (AP) -- OPEC sought Monday to boost the weakened oil market with promises that it really means to cut crude production this time, but skeptical traders pushed prices lower.

Ministers met in an emergency session late in the day to consider their surprise pledges last week to trim output, and some even urged deeper cuts to lift prices that have tumbled to nine-year lows.

But their words had little impact, at least initially, on prices. "The market's looking at the deal now with a bit more of a cautious eye," said John Saucer, an analyst at Salomon Smith Barney in Houston. "I think you could use the word disappointing." Light sweet crude oil to be delivered in May plunged 55 cents, or 3.3 percent, to $16.21 per barrel in trading on the New York Mercantile Exchange on Monday, giving back much of the roughly $2 per barrel oil had gained last week on news of the production cuts. The price of Brent crude to be delivered in May fell 63 cents, to finish at $14.77 per barrel, on London's International Petroleum Exchange. Some ministers said the 11-nation Organization of Petroleum Exporting Countries needs to slash output even more severely than thus far contemplated if it wants to push prices higher -- and analysts agree. But the ministers may end up hoping that, at least for now, initial pledges for output reduction by the group and several non- OPEC producers can give them a reprieve from the damage caused by OPEC's ill-judged decision in November to start pumping more crude. Prices plunged to a nine-year low, forcing the ministers to address the issue at the special meeting in Vienna, Austria, where the group has its headquarters. Earlier Monday, OPEC's efforts got a boost when non-member Norway, the world's second-largest crude exporter after Saudi Arabia, said it would cut roughly 100,000 barrels a day of its production, or 3 percent of the total. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.