LONDON--Oil prices were slightly higher Wednesday, with some
speculation among traders and analysts that oil producers are
considering cuts in production.
There have been press reports that Saudi Arabia, one of the
world's largest oil and gas producers, might consider reducing
production if other countries from outside the Organization for the
Petroleum Exporting Countries followed suit.
Analysts at Commerzbank said this was an " unexpected turn,"
given that OPEC, in which Saudi Arabia is the dominant player, last
week agreed to maintain current production levels. Commerzbank said
it is unlikely that producers would be able to agree on concerted
global action.
"Given the problems it is currently facing, Russia for example
is hardly in any position to accept lower revenues from the sale of
its crude oil, " Commerzbank said. The U.S. could adjust output "in
the foreseeable future," in reaction to low price levels, it
said.
Wednesday's focus will be the release of the weekly U.S.
Department of Energy oil inventories data, said Myrto Sokou, senior
research analyst at Sucden Financial.
An increase of 950,000 barrels in crude oil inventories is
expected by some in the market, she said. Rising inventory levels
could be expected to push prices lower.
Brent crude for January delivery was up 38 cents at $70.92 a
barrel on ICE Futures Europe. WTI for January was up 63 cents at
$67.51 on the New York Mercantile Exchange.
ICE gas oil for December changed hands at $634.75 a metric ton,
down $6.25. Gasoline for January delivery was up 11 points at
$1.8127 a gallon.
Write to Cassie Werber at cassie.werber@wsj.com
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