Posted on 01/13/2007 8:20:43 AM PST by kellynla
NEW YORK (Reuters) -- Oil prices bounced back from a 19-month low on Friday on worries producer group OPEC would deepen its supply cuts to stem a 15 percent slide since the start of the year.
U.S. crude rose 97 cents at $52.85 a barrel, after falling briefly to $51.65, the lowest level since late May 2005.
"There is short covering ahead of the long weekend along with concern about the possibility of a surprise OPEC meeting," said Nauman Barakat, senior vice president at Macquarie Futures USA.
Floor trading at the New York Mercantile Exchange will be closed on Monday for Martin Luther King Jr. Day.
Oil prices had been in steady decline during the past two weeks, losing nearly $9 a barrel, on fund selling and mild weather that has cut heating fuel demand in the world's top energy consumers.
The slide, the biggest two-week drop in two years, rang alarm bells for members of OPEC, which has been cutting output since autumn to stem crude's losses from record heights near $80 last summer.
OPEC President Mohammed al-Hamli, also the UAE oil minister, told Reuters on Thursday that the group is deeply concerned by the drop in oil prices this year and stands ready, if necessary, to bolster the world market.
Energy's winners and losers in 2006 OPEC first pledged to implement a 1.2 million barrel cut from Nov. 1, then later increased to a 1.7 million cut from Feb. 1, to shore up prices. Some ministers have said in the past that prices should be kept above $60.
"People have figured out that there might be some OPEC action this weekend. They may consult by phone and decide to hold an emergency meeting," said Tony Nunan, manager at Tokyo-based Mitsubishi Corp.'s risk management unit.
(Excerpt) Read more at money.cnn.com ...
It should be much lower.
My wife is in Bristow, Ok, on business, she says they're having some nasty weather out there.
Historically, the price rises around Valentine's day through the spring and summer. So enjoy whatever price you have to pay 'til then. LOL
I'm payin' 2.35 in So. Cal which is one on the cheapest prices in the state.
I relish the day when the price starts to slide ... and never stops. When the streets of Houston and Riyadh are littered with the broken bodies of oil magnates who have thrown themselves from their luchre-built towers. When gougers and speculators are chased through the streets by citizens with buckets of tar and bags of feathers ...
And when "Middle East" becomes another term for "Massachusetts."
A-OPEC members will cheat on any so called production cuts, they already are.
B-It won't matter. The offical threat alone will bring the hedge funds and speculators back in force. OPEC is not the only entity that wants a "floor" above $55.
Another wrong guess on the future price of oil. The countries pumping it are fat with cash flow and need more. The price will go down as they pump it at whatever price they can get. Russia is in big trouble and needs cash - they aren't a part of OPEC and that will hlep get us back to $40 oil.
Perhaps you should sell some short? Put your money where your mouth is.
Vote for Hillary and your dream may come true.
One of the best class warfare posts I have ever read. It really is amazing how all those speculators got filthy rich off of oil. All you have to do is speculate and boom, you're rich. I wish I could do that.
Then you should sell some short, so you can profit from the anomaly. Let us know how you do.
It's easy. Buy and get rich. Just like Amaranth.
Lucky. We're still in the $2.20s. Same as we were weeks ago.
If I thought my voting for Hillary Clinton would rid the earth of oil speculators, it would be worth it.
More proof of your confusion.
Market too yucky for you? The government should be in control?
Kill the greedy kulaks.
Thanks. But you don't read much, do you?
It really is amazing how all those speculators got filthy rich off of oil.
Nothing amazing about it. Market manipulation has been around for millennia.
All you have to do is speculate and boom, you're rich.
That's about it. Cash in on people's fear, manipulate the price a little, then cash out before the bottom falls out.
I wish I could do that.
You can; see above. But first, get a conscience-ectomy.
I must have missed where I said that ...
Kill the greedy kulaks.
Finally. Something we can agree on.
Anyone remember what the highest per barrel has been?
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