World crude oil prices rebounded on Tuesday after the International Energy Agency had warned that falling inventories of oil could put upward pressure on prices in coming months.Traders were also looking to a meeting on Thursday of the powerful cartel of OPEC oil producers.The price of Brent North Sea crude for April delivery added 69 cents to 61.43 dollars per barrel in electronic trading on Tuesday.New York's main oil futures contract, light sweet crude for delivery in April, gained 54 cents to 59.45 dollars per barrel in electronic deals before the official opening of the US market."Crude futures were higher today (Tuesday) ... after bullish news from the International Energy Agency, who said that oil inventories in industrialized countries are likely to score their largest first quarter decline in over 10 years, following OPEC production curbs," said Sucden analyst Michael Davies."In addition, colder weather in the US in February is also expected to take its toll on oil stocks."The US Department of Energy publishes its weekly snapshot of American energy stockpiles on Wednesday.The Paris-based IEA warned on Tuesday about dwindling global inventories in leading industrialized nations in the group's monthly market report."Tighter OPEC supply and colder temperatures in the US in February served to perpetuate the recent downward trend in OECD stocks," said the IEA, which serves as an energy watchdog for industrialised countries.The report added: "Preliminary data suggest that OECD stocks have fallen by over 1.26 mb/d (million barrels per day) over the first two months of the year, and could be heading for the largest quarter stock draw for over ten years."The OECD area covers 30 of the world's most industrialised countries, including North America, western Europe, Japan, Australia and South Korea.Data for January and February show "reason to be concerned" and recent declines in crude as well as gasoline and distillate stocks bring inventories to "levels that were associated with higher and sharply rising prices last summer."The price of crude oil hit a record 78 dollars per barrel in mid-2006, but has since fallen back to about 60 dollars.The Organisation of the Petroleum Exporting Countries -- meeting in Vienna on Thursday -- had moved to cut production last year after prices plunged from record highs above 78 dollars per barrel that were hit in mid-2006.OPEC member Iran predicted Tuesday the cartel would not agree a further output cut this week following February's quota reduction."It is not expected that a new decision will be made in the March meeting for another cut in crude output," Iran's representative to OPEC Hossein Kazempour Ardabili told the ISNA news agency.Last year, OPEC ministers agreed to cut output by 1.2 million bpd, starting in November, followed by another cut of 500,000 bpd that was due to have begun on February 1 this year.Ministers from the powerful cartel are widely forecast to maintain its official production quota of 25.8 million barrels per day later this week.
Copyright 2008, by
AFP
. All rights reserved
Viacom launches billion-dollar lawsuit against...
Pirelli weighs sale of stake in Telecom Italia 