OPEC members will likely cut supplies by 3.8 percent this month to 30.98 million barrels a day following a decision in October to lower production, according to consultant PetroLogistics Ltd. The Bank of Japan said it will consider pumping more money into the financial system, while the European Commission will announce a fiscal-stimulus plan next week, President Jose Barroso said yesterday.
Crude oil for January delivery rose as much as $1.23, or 2.5 percent, to $50.65 a barrel on the New York Mercantile Exchange. It was at $50.32 at 1:12 p.m. in London.
The contract earlier fell as much as $1.17, or 2.4 percent, to $48.25 a barrel, the lowest since May 23, 2005. Futures have dropped 67 percent since reaching a record $147.27 a barrel on July 11.
Thirteen members of the Organization of Petroleum Exporting Countries, due meet in Cairo eight days from now, are set to supply 30.98 million barrels a day this month, compared with 32.2 million a day in October, PetroLogistics founder Conrad Gerber said today by telephone from Geneva.
The reduction was led by Saudi Arabia, which trimmed supplies to 8.95 million barrels a day in November from 9.49 million a day in the previous month, Petrologistics data showed. The 11 OPEC states subject to output quotas are still producing in excess of their official limits, Gerber said. OPEC members meet in Cairo in eight day’s time.
Brent crude oil for January settlement rose as much as $1.62, or 3.4 percent, to $49.70 a barrel on London’s ICE Futures Europe exchange.