Oil rises above $88 as OPEC leaves out­put sta­ble

The Pak Banker - - International3 -

SINGAPORE: Oil prices rose above $88 a bar­rel Mon­day in Asia af­ter OPEC left its crude out­put quo­tas un­changed, cit­ing slow­ing de­mand and abun­dant sup­plies. Bench­mark oil for Jan­uary de­liv­ery was up 53 cents to $88.32 a bar­rel at late af­ter­noon Singapore time in elec­tronic trad­ing on the New York Mer­can­tile Ex­change. The con­tract lost 58 cents to set­tle at $87.79 on Fri­day.

Min­is­ters from the 12na­tion Or­ga­ni­za­tion of Petroleum Ex­port­ing Coun­tries said at a meet­ing in Quito, Ecuador on Satur­day that a "frag­ile global eco­nomic re­cov­ery" and "fears of a sec­ond bank­ing cri­sis in Europe" kept the car­tel from rais­ing oil pro­duc­tion. Many OPEC na­tions de­pend on oil sales for for­eign cur­rency re­serves and govern­ment spend­ing and are re­luc­tant to take mea­sures to un­der­mine prices. How­ever, a jump in crude prices would spark in­fla­tion and hurt global eco­nomic growth. "The min­is­ters gen­er­ally love ex­ist­ing prices," Cameron Hanover said in a re­port. "Some in­sid­ers have hinted at a quota in­crease if crude oil prices break above $100 a bar­rel." -Reuters

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