“Crude rose, reversing earlier losses, amid speculation the Organization of Petroleum Exporting Countries may reduce supply in response to slowing demand.
Futures gained as much as 0.3 percent in New York. The International Energy Agency on May 12 trimmed its 2011 global oil demand forecast for the first time as this year’s price rally begins to weigh on consumers. There is a 65 percent chance OPEC will raise its production quota to lessen the risk high prices will curb demand, Societe Generale SA said in a report.
“The current data coming out suggest a fall off in economic activity and a decrease in demand,” said Alexander Ridgers, head of commodities at CMC Markets in London. “If this happens OPEC will tighten their supply.”
Crude for July delivery rose as much as 29 cents to $99.30 a barrel in electronic trading on the New York Mercantile Exchange and was at $99.14 at 10:33 a.m. London time. Prices are up 39 percent the past year. Brent crude for July delivery was at $114.78 a barrel, up 30 cents, on the London-based ICE Futures Europe exchange.”
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They just said they raised quotas. WTF!