Oil Back on the Rise

By WebProNews - Fri, 02/04/2005 - 4:02pm.

After three days of falling, oil prices started to rise again with the possibility that OPEC may make more production cuts.

Analysts believe that markets were bracing for next week's report by the International Energy Agency, which OPEC might take into consideration for a cutback decision.

An article at TheStreet.com says,

"Traders are somewhat ambivalent about OPEC's production strategy, after the oil cartel decided against cutting production for the second time this year. Some had expected another reduction to the one that took effect Jan. 1 to support prices. OPEC has also signaled its desire to keep prices above $40 a barrel, relatively high by historical standards.

Prices weakened ahead of and after Energy Department data Wednesday showing declines in crude oil and distillate supplies but a gain in gasoline stocks.

A period of warmer weather after a long cold spell in the northeastern U.S. -- coinciding with what is considered the end of the peak heating oil season -- has taken some of the focus off distillate levels."

Prices hit near the $47 a barrel mark.

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