Crude Oil Rises


Crude oil rose for the first time in six days as OPEC members cut production and governments step up efforts to revive economic growth.

The Organization of Petroleum Exporting Counties will trim supplies by 3.8 percent this month as members implement an October agreement, according to consultant PetroLogistics Ltd. The group will meet next week to discuss further reductions. The Bank of Japan said today it will consider pumping more money into the financial system.

Crude oil for January delivery rose 46 cents, or 0.9 percent, to $49.88 a barrel at the 2:30 p.m. close of floor trading on the New York Mercantile Exchange. Futures have dropped 66 percent since reaching a record $147.27 on July 11.

Thirteen OPEC members, due to 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.

Bank of Japan Governor Masaaki Shirakawa has instructed his staff to study new ways of making money available for lending, such as accepting corporate debt as collateral, the central bank said in a statement in Tokyo today.

The European Union is crafting a coordinated economic- stimulus package to spur its 27-nation economy based on contributions by each EU government.

Brent crude oil for January settlement increased $1.04, or 2.2 percent, to $49.12 a barrel on London's ICE Futures Europe exchange. Futures touched $47.40, the lowest since Feb. 22, 2005.


TradingEconomics.com, Bloomberg
11/21/2008 12:19:02 PM