Even though a number of its key customer nations asked OPEC to increase supplies, the organization said they're going to keep it at its current levels for now. U.S crude climbed to almost $89 a barrel on the news. London Brent crude reached almost $90 a barrel.
Oil inventories for the U.S. also helped increase the price, as supplies dropped 8 million barrels by November 30, the lowest it's been since March 2005.
Factors involved with that are fog on the Gulf Coast which slowed shipping and a fire at a Canadian oil sands upgrader in Alberta, Canada, which slowed production to a minimum.
The U.S. report that Iran has ceased its nuclear program years ago, could help ease the risk factor that has put pressure on oil prices from that standpoint.
According to Barclays Capital analysts, the decision by OPEC could end up with new highs for oil. "Barring extremely negative economic outcomes, we see plenty of scope for prices to move back up and new highs to be tested," Barclays said in a research note.
OPEC controls over a third of the world oil market at this time.
Sponsored link: The outsourcing every manager requires - Tampa Locksmith
Comment Preview