Crude oil markets are ruling steady after what seemed to be an eternity of bearish run. Futures were unchanged subsequent to dropping fifth day yesterday in a row with the longest streak of declines since October. Markets meanwhile have turned their telescopes to Vienna where an OPEC meet is scheduled tomorrow that will address the question whether a reduction in production quota is necessary or not. Currently the 12 member group pumps 30 million barrels a day.
Countries like Iran say that OPEC should bring down production as demand has come down in Western nations. "Western countries are entering economic recession the United States has not finalized its budget and there are contending views on handling tax issue in the country " OPEC governor Mohammad Ali Khatibi said and was quoted by Iranian oil ministry news agency Shana as saying.
Meanwhile Brent crude oil for February delivery was seen trading at $106.23 a barrel a loss of 0.09% as of 11.00 AM IST its trans Atlantic counterpart WTI crude oil for January delivery was seen trading at $85 a gain of 0.05% against previous close. On India s MCX crude oil for December delivery was spotted trading at Rs.4667 a barrel a loss of 0.72%. The contract will expire in another 7 days. My expectations are for oil to hold around $85 a barrel said Jonathan Barratt the chief executive officer of Barratt s Bulletin a commodity newsletter in Sydney to Bloomberg News. We may see some rhetoric come out of OPEC that will support prices but I don t think they will change the quota. he added.