Oil prices "Rebound" Reach 82 dollars per barrel

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Oil prices "Rebound" Reach 82 dollars per barrel

Wednesday, 17 March 2010 09:01

New York - World oil prices rebounded, turned up (rebounding) of this barubaru weight loss, up to 82 dollars per barrel on Tuesday, as U.S. Federal Reserve to maintain interest rates.
On the night of OPEC production meeting, the main futures of New York, light sweet crude for April delivery rose above 82 dollars per barrel, before ending the day's trading at 81.70 dollars, up 1.90 dollars from Monday closing level.

In London, oil, Brent North Sea crude for April delivery rose 1.13 dollars to 79.02 dollars.

"Crude oil recovered from the losses yesterday, and even more," said Andy Lipow of Lipow Oil Associates, adding that the weakening dollar encouraged investors to hunt commodities.

"I think that at the end of the year we will see the price of crude oil in the range of 90-95 dollars, because the global economy recovers and we see a drop in production in many regions of the world."

The Federal Reserve on Tuesday to maintain the lowest interest rates in the hope still fragile U.S. economic recovery stimulus, hampered by high unemployment and tight credit.

Oil also rose supported by the weak dollar, which fell against the euro after the news of the unexpected strengthening of German investor sentiment.

Crude oil is priced in dollars received support from the weakening greenback due to crude oil cheaper for buyers using other currencies. In turn, typically stimulate demand.

Oil also rose on fears about U.S. energy demand and the possibility of China moves to cool the booming economy.

"Fundamentals (supply and demand) will be back in focus again as OPEC meeting in Vienna tomorrow, where we expect the exporter group to maintain its production policy," said analysts VTB Capital, Andrey Kryuchenkov.

He added that the move would help "reduce membengkaknya stock and price supports in the second quarter 2010".

Organization of Petroleum Exporting Countries (OPEC) is widely expected to maintain the official oil production quota of 24.84 million barrels per day when they met in the capital of Austria on Wednesday.

"This will be an easy meeting," said UAE Energy Minister Mohammad bin Dhaen al-Hamli told reporters on Tuesday after fellow OPEC member country said the cartel does not need to change official output targets.

The members have appointed high oil inventories, lack of demand and price of crude oil is acceptable for the reasons why OPEC does not need to change the limits on the production of.

"There is no need to increase the production of ... Kuwait supports maintaining production quotas," Kuwait Oil Minister Sheikh Ahmad Abdullah al-Sabah said on Tuesday before heading to Vienna - home to the headquarters of OPEC.

But Kuwait, like other OPEC member, called for greater adherence to the upper limit of the cartel's official production because the data shows that the organization is pumping more than the target.

"Kuwait will push for more follow (output) ... was the main problem" at OPEC ministerial meeting ahead, said Sheikh Ahmad.

OPEC members are interested in greater compliance in accordance with the official production quota amid concerns that oil demand may weaken as the government looks to end the steps that had never happened before to put the country on the road to economic recovery. | antaranews.com |tenderoffer.biz|