Crude oil prices rise in Asia as OPEC hints further cuts

27-Nov-06

Hints that the OPEC cartel could cut production again next month in order to support the market, has sent oil prices rising in Asian trade. New York's main contract, light sweet crude for January delivery, rose to US$59.51 a barrel. Organization of the Petroleum Exporting Countries (OPEC) approved a reduction in output of 1.2 million bpd on October 20 to curtail a fall in crude prices which have fallen from above US$78 since July. OPEC's seriousness to implement this decision is under question, and last week a consultancy firm reported that Saudi Arabia was the sole OPEC member to have cut production in November. OPEC is due to meet again in mid December.