Crude Oil Could Surge as OPEC Keeps Cap Relatively Flat (USO)
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In an effort to hash out the appropriate production level for the group, the Organization of Petroleum Exporting Countries held a meeting in Vienna Wednesday. This is the first time the ministers have met since June, when production-level adjustments were sought amid Saudi-Iranian conflict.
After extensive talks, the group agreed on 30 million barrels of oil per day, slightly higher than the 29.56 million barrels per day produced by the 12-member group. Saudi Arabia leads at 10.047 million barrels per day, above its current quota of 8 million barrels per day. The number was a significant increase from October, the WSJ reports, and many speculate the production from Saudi Arabia will cool in the coming months.
With the new agreement, all 12 members will have a cap placed on output.
Kuwaiti oil minister Mohammad Al-Busairi commented ahead of the meeting, "the market is now balanced, particularly the first-quarter of 2012."
At 30 million barrels per day, crude prices might move higher as demand returns. Should Europe settle debt issues over the next couple months, demand could surge, causing crude prices to rise well above the $100 mark where they're currently sitting.
Ahead of the bell, the United States Oil Fund LP (NYSE: USO) is 1.6 percent lower, reflecting the $1.50 dip to $98.64 per barrel on the COMEX.
After extensive talks, the group agreed on 30 million barrels of oil per day, slightly higher than the 29.56 million barrels per day produced by the 12-member group. Saudi Arabia leads at 10.047 million barrels per day, above its current quota of 8 million barrels per day. The number was a significant increase from October, the WSJ reports, and many speculate the production from Saudi Arabia will cool in the coming months.
With the new agreement, all 12 members will have a cap placed on output.
Kuwaiti oil minister Mohammad Al-Busairi commented ahead of the meeting, "the market is now balanced, particularly the first-quarter of 2012."
At 30 million barrels per day, crude prices might move higher as demand returns. Should Europe settle debt issues over the next couple months, demand could surge, causing crude prices to rise well above the $100 mark where they're currently sitting.
Ahead of the bell, the United States Oil Fund LP (NYSE: USO) is 1.6 percent lower, reflecting the $1.50 dip to $98.64 per barrel on the COMEX.
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