Crude Oil Rises to 8-Week High on Report of Lower OPEC Output

Jan. 24 (Bloomberg) -- Crude oil in New York rose to an eight-week high after a report that OPEC has reduced production as members followed through on pledges made six weeks ago.

The Organization of Petroleum Exporting Countries cut output by 800,000 barrels a day this month from December's average, according to a preliminary estimate by the consultant PetroLogistics Ltd. Oil also got a boost from the coldest temperatures so far this winter in the U.S. Northeast, which may deplete inventories of heating fuels.

``The OPEC production cuts combined with inventory expectations justify higher prices,'' said Jason Schenker, an analyst with Wachovia Corp. in Charlotte. ``The 800,000 barrels is a substantial cut, especially with demand rising.''

Crude oil for March delivery rose 28 cents, or 0.6 percent, to $48.81 a barrel on the New York Mercantile Exchange, the highest close since Nov. 30. Prices are 40 percent higher than a year ago. <snip>

http://www.bloomberg.com/apps/news?pid=10000087&sid=acdaUmtHi_ws&refer=top_world_news


Associated Press
Update 1: Venezuela Blames U.S. for High Oil Prices
01.24.2005, 05:02 PM

Venezuela's oil minister said Monday that the recent rise in world oil prices stems from fears the United States may use military force against Iran because of that country's nuclear program.

"There's a lot of nervousness. You can't have a threat over Iran and pretend that it won't affect oil prices," Rafael Ramirez told reporters following a cabinet meeting.

The U.S. administration "continues influencing a rise (in oil prices)," Ramirez said. <snip>

http://www.forbes.com/home/feeds/ap/2005/01/24/ap1777420.html