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Oil moves up on expected deman decline

22 December 2008 09:19 (UTC +04:00)

Baku. Vahab Rzayev - APA-Economics. Crude oil rose in New York on speculation OPECâ€™s production cuts next month and U.S. economic stimulus plans will reduce global stockpiles, reports Bloomberg.
Crude oil for February delivery gained as much as 78 cents, or 1.8 percent, to $43.14 a barrel in after-hours electronic trading on the New York Mercantile Exchange.
The January contract, which expired last week, plunged 6.5 percent to $33.87 a barrel on Dec. 19, the lowest settlement since Feb. 10, 2004. It dropped 27 percent last week as stockpiles at Cushing, Oklahoma, jumped to a 19-month high and investors quit the contract before the holiday break.
Brent crude oil for February settlement rose as much as 65 cents, or 1.5 percent, to $44.65 a barrel on Londonâ€™s ICE Futures Europe exchange. It rose 1.5 percent to $44 on Dec. 19.
OPEC, which pumps about 40 percent of the worldâ€™s oil, agreed this month to cut daily output by 2.46 million barrels starting Jan. 1 to hold up prices and prevent a glut developing in the second quarter of next year.