Oil, which lost 54% in 2008, has gained 67% this year on expectations that the worldwide economic rebound will revive demand for fuels
Oil prices in New York were trading near a two-year high on Wednesday as positive housing data and fuel-inventory report signaled a recovery in the US, the world's largest economy and the biggest energy consumer.
Crude oil for February delivery was at US$74.42 per barrel, up 2 cents, in electronic trading on the New York Mercantile Exchange at 10:49 a.m. Singapore time. Futures closed yesterday at US$74.40, the highest settlement since Dec. 4. There will be no trading Dec. 25 for Christmas and on Jan. 1 for New Year’s Day.
Oil, which lost 54% in 2008, has gained 67% this year on expectations that the worldwide economic rebound will revive demand for fuels.
The National Association of Realtors reported that November sales of existing homes increased at the highest annual rate since February 2007. Separately, the American Petroleum Institute said that the country’s crude oil and refined-product stockpiles declined.
The Organization of Petroleum Exporting Countries (OPEC) agreed at a meeting yesterday in Luanda, Angola, to hold production quotas at 24.85mn barrels per day. The 12-member group, which pumps about 40% of the world’s oil, has met four times this year without revising official output targets.
Rising oil prices have encouraged some OPEC members to pump more than official quotas. OPEC's Secretary-General Abdalla el-Badri said that he wants quota compliance to improve to between 75% and 80% from the current level of about 60%.
OPEC estimates show that Saudi Arabia and its Gulf allies Kuwait and the UAE are at or near full compliance with output cuts. But Angola, Nigeria and Iran have made little or no contribution.
