Commodities: OPEC hints at output hike
Indications that OPEC may decide at its next meeting in February to increase production sent oil futures into decline for the third day in succession.
Algeria’s oil minister, Chakib Khelil, who will take over as president of the Organisation of Petroleum Exporting Countries (OPEC) from the beginning of next year, said over the week-end that OPEC would not rule out the possibility “of increasing production if the market wants it.”
Khelil expressed the view that supply is currently sufficient to keep oil prices stable in January. According to the U.S. Energy Information Administration OPEC, excluding new member Ecuador, held a surplus production capacity of 2.09m barrels a day in the third quarter of 2007.
(Article continues below)Advertisement
Crude oil for January delivery fell 64 cents to $90.63, having fallen below $90 earlier in the day, despite forecasts for winter storms in the north east of the USA which are likely to increase oil consumption.
On the metals market, gold futures edged higher despite the US dollar strengthening. Gold for February delivery rose $1.30 to $799.30, with the buoyant crude oil price also diminishing the appeal of the yellow metal.
Silver prices were little changed, while palladium and platinum prices headed higher. Copper fell 6.35 cents to $2.8730 a pound.
