Oil prices dipped below US$62 on Monday, despite an anticipated further production cut by OPEC, when it meets on Thursday in Nigeria, against abundant global fuel inventories. U.S. crude fell to US$61.73 a barrel and London Brent crude settled at US$62.05.
OPEC had agreed to lower output by 1.2 million bpd from November 1, and several oil ministers have said they support a further reduction. There is a strong indication that OPEC is poised to deepen cuts further to counter strong fuel stockpiles, particularly in the United States, where crude inventories are at the highest level for this year since 1993. While traders are anticipating a further supply cut, it is doubtful that the reduction would be sufficient to significantly tighten supply and boost prices.
11-Dec-06 
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