Some analysts predict rise in oil price

Crude-oil prices may rise this week on speculation that inventories will decline as the Organization of Petroleum Exporting Countries reduces production.

Sixteen of 42 analysts, traders and brokers, or 38 percent, said prices will increase, according to a Bloomberg News survey. Thirteen expected a drop, and 13 forecast little change. Last week, analysts were evenly divided on which direction prices would move.

OPEC, which pumps about 40 percent of the world’s oil, agreed to cut production by 1.2 million barrels from Nov. 1, citing slower-than-forecast demand growth and rising stockpiles. Member states will cut output by a further 500,000 barrels Feb. 1, the group said Dec. 14. World oil demand peaks in the fourth quarter when refiners make heating oil for winter.

“We will focus on strong demand and the OPEC cuts,” said Phil Flynn, vice president of risk management with Alaron Trading Corp. in Chicago. “OPEC appears to be serious about making the cuts, and this will take a toll on supplies.”

Dallas Star-Telegram