Wed, Oct 11, 2006 - Page 12 News List

Potential output cuts drive global crude prices higher


World crude prices climbed yesterday on rising expectations of an output cut from international oil cartel OPEC, dealers said.

New York's main contract, light sweet crude for delivery in November, rose US$0.44 to US$60.40 per barrel in electronic deals before the official opening of the US market.

In London, Brent North Sea crude for November delivery climbed US$0.37 to US$60.91 per barrel in electronic trading.

Although traders were still concerned about the nuclear test by North Korea on Monday, the main issue was growing talk from OPEC about a supply cut, according to analysts.

"I think there's just growing expectation that OPEC is going to cut production," said Mark Pervan, senior resources analyst at Daiwa Securities in Melbourne.

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