Best Investment

BY REUTERS

Posted 1/29/2007

U.S. crude oil futures ended a seesaw session more than a dollar lower on Monday. Profit taking and questions about OPEC production target compliance offset winter cold in the U.S. Northeast, which may have arrived too late to provide significant price support.

On the New York Mercantile Exchange, March crude fell $1.41, or 2.54%, to settle at $54.01 per barrel. The trading range was from $53.75 to $55.96 reached earlier in electronic trading.

March crude jumped $1.19 on Friday, reversing Thursday’s $1.14 fall, and Monday’s electronic trading high of $55.96 was just above Thursday’s high trade of $55.90.

In London on Monday, ICE March Brent crude fell $1.61 or 2.9 percent at $53.68 per barrel, trading from $53.56 to $55.83.

Price pressure came Monday from signs OPEC producers were not yet in compliance with production cut targets.

More pressure came when Saudi Arabia’s outgoing ambassador to the U.S., Prince Turki al-Faisal, told reporters that U.S. oil prices near $50 a barrel are good for producers and consumers.

OPEC is due to cut 500,000 barrels per day of production starting Thursday, with many traders still watching for signs the producer group can fully comply with the 1.2 million-bpd cut that was to be implemented on Nov. 1.

OPEC member Nigeria’s oil exports were expected to climb to a 14-month high in March, traders said on Monday, raising doubts about the West African country’s intention to trim output next month.

Nigeria was scheduled to load 2.21 million bpd, up from a revised 1.8 million bpd the previous month. That is the highest since January 2006, according to Reuters data.

Abu Dhabi, main producer in OPEC member United Arab Emirates, will restore full term crude supplies to Asian refiners for March, reversing a reduction for February, industry sources said Monday.

Cold weather arriving in the U.S. Northeast has helped stabilize crude prices above $50, but despite forecasts for another week of cold the winter may have arrived with too little too late, according to some traders and analysts.

U.S. heating demand was expected to be about 9% above normal this week, the National Weather Service forecast in its weekly report. Last week heating demand was about 1.4% above normal.

Demand for heating oil this week was expected to average 4.2% above normal, with heating demand for natural gas 9.2% above normal and heating demand for electricity 11.3 percent above normal, the NWS report showed.

BY REUTERS

Posted 1/29/2007

U.S. crude oil futures ended a seesaw session more than a dollar lower on Monday. Profit taking and questions about OPEC production target compliance offset winter cold in the U.S. Northeast, which may have arrived too late to provide significant price support.

On the New York Mercantile Exchange, March crude fell $1.41, or 2.54%, to settle at $54.01 per barrel. The trading range was from $53.75 to $55.96 reached earlier in electronic trading.

March crude jumped $1.19 on Friday, reversing Thursday’s $1.14 fall, and Monday’s electronic trading high of $55.96 was just above Thursday’s high trade of $55.90.

In London on Monday, ICE March Brent crude fell $1.61 or 2.9 percent at $53.68 per barrel, trading from $53.56 to $55.83.

Price pressure came Monday from signs OPEC producers were not yet in compliance with production cut targets.

More pressure came when Saudi Arabia’s outgoing ambassador to the U.S., Prince Turki al-Faisal, told reporters that U.S. oil prices near $50 a barrel are good for producers and consumers.

OPEC is due to cut 500,000 barrels per day of production starting Thursday, with many traders still watching for signs the producer group can fully comply with the 1.2 million-bpd cut that was to be implemented on Nov. 1.

OPEC member Nigeria’s oil exports were expected to climb to a 14-month high in March, traders said on Monday, raising doubts about the West African country’s intention to trim output next month.

Nigeria was scheduled to load 2.21 million bpd, up from a revised 1.8 million bpd the previous month. That is the highest since January 2006, according to Reuters data.

Abu Dhabi, main producer in OPEC member United Arab Emirates, will restore full term crude supplies to Asian refiners for March, reversing a reduction for February, industry sources said Monday.

Cold weather arriving in the U.S. Northeast has helped stabilize crude prices above $50, but despite forecasts for another week of cold the winter may have arrived with too little too late, according to some traders and analysts.

U.S. heating demand was expected to be about 9% above normal this week, the National Weather Service forecast in its weekly report. Last week heating demand was about 1.4% above normal.

Demand for heating oil this week was expected to average 4.2% above normal, with heating demand for natural gas 9.2% above normal and heating demand for electricity 11.3 percent above normal, the NWS report showed.