Concerns expressed by few OPEC members about the effect of the depreciating US dollar on their revenues, coupled by doubts over a possible output hike by OPEC to ease tight supplies, has caused an oil price hike. OPEC members are considering converting their cash reserves to the euro and away from the "worthless" U.S. dollar that has eroded the value of their reserves. The comments on the dollar came at a weekend summit, where the heads of state of OPEC sought to find ways to mitigate the adverse impact of the American dollar.
Light, sweet crude for January delivery rose to US$94.53 a barrel in Asian electronic trading on the New York Mercantile Exchange by midday in Singapore. In London, January Brent crude futures rose to US$92.35 a barrel on the ICE Futures exchange.