The last 3 weeks have seen oil prices hovering in the range of US$45 to US$50 a barrel, as the market has recorded mixed reactions alternatively to healthy U.S. oil inventories and possible production cuts from OPEC. Several OPEC producers have signalled a wait until its mid-March meeting to make any production cuts. Oil prices are sliding and have touched US$46 as fears of an early OPEC cut fade.
OPEC opted to keep production steady at its last meeting on Jan. 30, but left open the door to possible snap cuts to be agreed by telephone, keeping traders on edge. However, OPEC reps have reiterated that oil ministers would need to discuss further action if prices fell 30%- 40% or surged above US$50, or if a sharp rise was seen in commercial oil inventories.
OPEC is scheduled to meet in Isfahan, Iran, on March 16, to look carefully at fundamentals in the second quarter, when global demand fades after the winter.
08-Feb-05 
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