Oil Prices Rise With OPEC Forecast

Oil prices went up as a result of OPEC’s prediction of rising global demand, though analysts believe that the present range will remain for a little while.

“The U.S. is saying that supplies could be tight in summer and Venezuela is saying OPEC may act when there is no need for any production cut,” said Robert Montefusco, a broker at Sucden (U.K.) Ltd. “Demand is strong, that’s why the market is afraid and the speculative side is growing again.”

Crude for March was up 17 cents at $48.50 a barrel Europe while heating oil went up to $1.3427 a gallon.

“If the price tries to fall now after winter, we would propose and support a cut in production,” said Venezuelan Energy and Oil Minister Rafael Ramirez.

An ABC News article says

“OPEC acting Secretary-General Adnan Shihab Eldin has said the group may cut up to 1 million barrels a day. But Nigeria and fellow OPEC member Algeria have suggested no major reductions were needed.

According to the U.S. Energy Information Administration, oil demand in the United States averaged nearly 21.1 million barrels per day over the last month, 3 percent above last year. Crude stocks were at 296.4 million barrels per day for the week ending Feb. 11, up 22.6 million barrels per day from a year ago.”

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