Crude Edges Higher
Posted on: May 27th, 2009 | By Doug Casey | Filed under Oil Investment & Alternative Energy
In the energy market on Tuesday, crude for July delivery advanced, closing at $62.45/barrel, up 78 cents. June reformulated gasoline rose 1.16 cents, to $1.8524/gallon.
Analysts speculated that crude was following consumer confidence higher yesterday, with hopes raised for an economic recovery.
But all eyes will be on OPEC’s scheduled meeting Thursday in Vienna, with the general expectation being that the cartel will not cut production any further.
Saudi Arabia’s Oil Minister Ali Naimi yesterday called for OPEC to “stay the course” with its production and called for better compliance with past output reductions, according to Dow Jones Newswires.
“There are going to be some members who are more compliant with the target, who are going to be quite upset with their colleagues who have increased their production in April,” said Kevin Saville, of Platts Global Alert.
“What’s going to happen is behind closed doors, you’ll have members saying that we need to recommit to the cuts that we implemented at the end of last year,” Saville added.
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