Crude Oil Rises on Report Showing That OPEC Shipments Will Drop

Dec. 20 (Bloomberg) — Crude oil rose above $92 a barrel after a report showed that OPEC shipments will drop in the four weeks to Jan. 5 from the previous month.

The Organization of Petroleum Exporting Countries will load 24.24 million barrels a day, compared with 24.33 million barrels in the month ended Dec. 8, consultant Oil Movements predicted. Prices were down earlier on forecasts for warm U.S. weather and a government report showing a smaller-than-expected natural gas supply decline.


“The release of the Oil Movements story changed the complexion of the market,” said Phil Flynn, a commodities trader for Chicago-based Alaron Trading. “It calls into question whether OPEC will be increasing production.”

Crude oil for February delivery rose 96 cents, or 1.1 percent, to $92.20 a barrel at 12:26 p.m. on the New York Mercantile Exchange. Futures touched $99.29 on Nov. 21, the highest since trading began in 1983. Prices are up 45 percent from a year ago.

Bloomberg