Oil Prices Climb above 33 Dollars a Barrel
Oil prices rose above 33 dollars a barrel in London Tuesday as investors fretted over a possible production cut by OPEC, which appears increasingly concerned that prices will collapse in the spring.
Benchmark Brent quality crude oil for December delivery was being quoted at 33.10 dollars a barrel from 32.94 dollars at the close on Monday.
The market was concerned by forecasts of a cold snap in the United States and by the prospect that the Organization of Petroleum Exporting Countries kingpin, Saudi Arabia, might trim its production, analysts said.
"Saudi (Arabia) believes that there are signs that the oil market is oversupplied at the moment and by continuing to exceed its quota it will contribute to a large build up in stocks this winter," the GNI Institute said.
"Therefore by testing the water with a small cut ... it will be able to gauge the true level of demand in the market," it added – LONDON (AFP)
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