Light sweet crude for January delivery fell by 17 cents to US$62.29 a barrel in midmorning Asian electronic trading on the New York Mercantile Exchange. This dip follows the price increase on Wednesday that was spurred by colder weather in USA and a US government data report indicating shrinking supplies of crude, gasoline and heating oil. Many in the market suggest that the dip was due to profit-taking after prices climbed above US$62 a barrel the day before.
The market is expected to remain strong with prices likely to remain in the range of US$64-65, as the Northern Hemisphere enters its winter season, when demand is typically highest. Other factors contributing to the market's upward momentum include a decline in the U.S. dollar, the currency in which crude oil is traded, and the possibility of further production cuts by OPEC, which meets next month in Nigeria.
30-Nov-06 
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