Light sweet crude for January delivery dipped to US$58.80 a barrel Monday on the New York Mercantile Exchange. Crude oil prices dipped on Monday on mild US weather forecasts and as supply worries eased due resumption of oil production in Iraq and Nigeria. However, the possibility of future production cuts by OPEC, impacted prices. OPEC had earlier announced an output cut of 1.2 million bpd, and may make further cuts in their next meeting scheduled for Dec. 14 in Nigeria.
On Friday (last day for trading in the December contract), the December light sweet crude contract closed at $55.81 a barrel. It was the lowest settlement for the front-month crude contract since June 15, 2005. January contract is currently US$3 higher than the just-expired December contract, probably as the market feels OPEC production cuts are going to happen.
21-Nov-06 
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