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Oil price fell before OPEC cut

10 December 2008 07:44 (UTC +04:00)

Baku. Vahab Rzayev - APA-Economics. Crude oil rose as traders bought contracts to close out bets that prices will fall and on signs that OPEC will cut production twice in as many months, Bloomberg reports.
Crude oil futures for January delivery rose as much as $1.42, or 3.4 percent, to $43.49 a barrel in after-hours electronic trading on the New York Mercantile Exchange. It was at $43.12 a barrel at 1:54 p.m. Singapore time. Yesterday, futures fell $1.64, or 3.8 percent, to $42.07 a barrel, capping a 23 percent drop since Nov. 26.
OPEC should make a ``substantialâ€™â€™ output cut when it meets on Dec. 17 in Algeria, Shokri Ghanem, Libyaâ€™s top oil official, said on Dec. 8. OPEC agreed on Oct. 24 to cut daily output by 1.5 million barrels.
The Energy Department is scheduled to release its weekly report at 10:35 a.m. today in Washington.
Brent crude oil for January settlement rose as much as $1.22, or 2.9 percent, to $42.75 a barrel on Londonâ€™s ICE Futures Europe exchange. It was at $42.53 a barrel at 1:52 p.m. Singapore time. The contract yesterday declined $1.89, or 4.4 percent, to settle at $41.53 a barrel.