Oil Prices Climb Above $62 a Barrel
 1st DEC 2006

Other factors contributing to the market's upward momentum include a decline in the dollar, the currency in which crude oil is traded, and the possibility of further production cuts by the Organization of Petroleum Exporting Countries, which meets next month in Nigeria. One analyst Tim Evans said the recent upswing in oil prices -- front-month crude futures have climbed by roughly $6 a barrel since settling below $56 on Nov. 17 -- may reflect traders' reassessment of OPEC's October decision to reduce its output by 1.2 million barrels a day.

Once extremely sceptical of the carte's ability to carry out the cuts, the market now seems to recognize the significance of the cartel's action, Evans said. "Maybe it was foolhardy on the part of some sceptics to take the opposite side of the trade from a cartel that has a 35 percent market share," he said. "OPEC made a very clear statement that they intend to put a floor underneath this market," he added.  Light sweet crude for January delivery rose $1.47 to settle at $62.46 a barrel on the New York Mercantile Exchange. January Brent crude at London\'s ICE Futures exchange rose $1.86 to settle at $63.07 a barrel.

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