Crude oil
2008-12-01,Weekly summary 24-28.11.2008
Brent oil jumped to $54,11 a barrel at the ICE as investors made an assumption that further decrease in oil supply due to OPEC's determination may be enough to meet demand. As a result of the global slowdown market has to cope with 1 million barrels/day oversupply.
Brent oil dropped to $50,45 a barrel on concerns about falling demand for fuels. U.S fuels consumption fell by 5,2% in the first 10 months according to American Petroleum Institute survey. Worries among investors about the global demand for fuels have been so serious that on Wednesday trading finished with a decline of over $4.
Brent oil rose to $54.35 a barrel after Russian announcement on oil production cuts, coordinated with the OPEC countries. The nearest OPEC's meeting is scheduled on 29 November and Russian authorities are to take part in that conference. Brent oil is seen to fluctuate around $50 a barrel in short term but the potential of oil's slide hasn't run out yet.
Brent oil changed just a little, trading at $53,07 a barrel as investors were not sure if further OPEC's oil production limits may boost prices. Countries of the oil organization support nearly 40% of oil global production, but on the other side their influence on demand for fuels is also limited especially in these days, when consumption of fuels is seen to go down further. Currently oil global inventories equal 56-days of supply (more than expected 52 days).
Brent oil was quoted at $54,6 a barrel as investors believed that the OPEC may delay its oil production cuts till 17 December. OPEC members are going to see effects of their previous reductions of oil extraction rather than make another cuts in advance. Another gloomy factor is deepening recession in Japan - the second biggest importer of black gold. Japanese industrial output dropped 3,1% in 3rd quarter and national 'large caps' are on the best way to reduce production further in the next two months.
Some tech. levels:
Res:$54,5 - $57 - $62
Sup:$49,6 - $47,4 - $45
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