markettrend766
19-12-2008, 07:50 AM
Oil prices hovered near four-and-a-half year lows on Thursday as persi-stent investor pessimism over global crude demand out-weighed the news of Org-anisation of Petroleum Exporting Co-untries’ (OPEC) largest-ever production cut.
Light, sweet crude for January delivery edged up 47 cents to $40.53 a barrel in electronic trading on the New York Mercantile Exchange by midday in Europe. Earlier, it fell as low as $39.19 — a level not seen since at least July 2004. Overnight, the contract fell $3.54 to settle at $40.06 a barrel, after touching $39.88. The Nymex contract for February delivery, which analysts said better reflected oil price trends, was up 82 cents to $45.43 a barrel.
“World Trade Index (WTI) for January expires tomorrow and the expiring contract can go anywhere,” said Mr Olivier Jakob of Petromatrix in Switzerland, referring to West Texas Intermediate, the type of crude oil used for the Nymex contracts. “January WTI needs to be ignored and the focus kept rather either on February WTI or February Brent,” Jakob said.
Light, sweet crude for January delivery edged up 47 cents to $40.53 a barrel in electronic trading on the New York Mercantile Exchange by midday in Europe. Earlier, it fell as low as $39.19 — a level not seen since at least July 2004. Overnight, the contract fell $3.54 to settle at $40.06 a barrel, after touching $39.88. The Nymex contract for February delivery, which analysts said better reflected oil price trends, was up 82 cents to $45.43 a barrel.
“World Trade Index (WTI) for January expires tomorrow and the expiring contract can go anywhere,” said Mr Olivier Jakob of Petromatrix in Switzerland, referring to West Texas Intermediate, the type of crude oil used for the Nymex contracts. “January WTI needs to be ignored and the focus kept rather either on February WTI or February Brent,” Jakob said.