What's Moving the Oil Market

•Global crude futures were down Monday after OPEC as expected left official crude output levels unchanged over the weekend, deferring a decision until the cartel's next gathering in Algeria in December. At 1118 GMT, the January ICE Brent futures contract traded at $51.40/barrel, down $2.09/b from the previous settle, while the NYMEX light sweet crude contract was at $52.05/b, down $2.38/b.

•The OPEC meeting resulted in a call for stricter compliance among existing quotas, with Iran and Venezuela cited as likely candidates, sources said. "Gulf producers insisted on stricter compliance of existing cuts before new ones were introduced. Apparently, Iran and Venezuela were discreetly singled out as countries failing to adhere to previously agreed cutbacks," energy analyst Edward Meir said in a report.

•The lower crude price was also accompanied by a stronger dollar, adding additional downward pressure for non-dollar denominated currencies. The ICE Dollar Index traded at 86.730 points, up 0.233 from Friday's settle. The strong correlation between equity markets and commodity markets was evident during Monday morning trading, with equity markets down on news of poor economic data coming out of China and Japan.

Updated: December 1, 2008

This content first appears in Platts Oilgram Price Report. Platts Oilgram Price Report is a daily report that covers market changes, market fundamentals and factors driving prices. Platts Oilgram Price Report also brings a vast array of Platts international prices for crude and products, netback tables, and market critical data. Subscribe now to Oilgram Price Report, or click here to request a trial.

Platts What's Moving the Oil Market What's Moving the Oil Market 12/01/08

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