Oil market watch
Brent for January delivery firmed this morning on London’s ICE exchange, recovering some of yesterday’s losses. But $55.25/b is still low, with world recession fears haunting the market — China’s $0.6bn bailout package hasn’t won over all doubters. For an indication of the market’s bearish mood, look at the news out of Nigeria. Six months ago, more conflict in the Delta would have sparked a rally. Meanwhile, in the US, crude stocks rose marginally to 311.9m barrels. No wonder Opec wants another impromptu meeting, this time in Cairo, at the end of the month.
If Opec cuts again, that will leave plenty of spare capacity in the system. So even a cut has a bearish long-term look.
