Crude oil has seen strong rally and ended at USD 67 to a barrel, up over USD 4/bbl on the NYMEX. The IEA said that if there is not enough investment in oil production right now, they could see annually a drop in oil output of about 9% a year. Here is a verbatim transcript of Sharon Epperson’s comments on CNBC-TV18. Also watch the accompanying video. We have got a strong rally in oil all day along and it has held up pretty well here. Oil is still up about USD 5 in electronic trading session, after closing significantly higher above 4 to a barrel at USD 67/bbl. The Fed’s interest rate cut was already priced into the market and we saw the dollar crumbled on the anticipation of that and that continued weakness helped to support oil prices. We did also get inventory data today that showed a mixed picture in terms of supplies. Looking at gasoline supplies, the biggest surprise is a drop there when a build was expected. But the story is as you look along the curve, what could happen to oil prices in the future? We are looking at the situation, according to the International Energy Agency (IEA) where if there is not enough investment in oil production right now, we could see annually a drop off in oil output of about 9% a year. So what the traders can be focused on now in the days ahead is of course we are looking at the spot month prices here seeming to find support in the mid 60s. The weakness in the dollar will continue and the rate cuts that we have seen not only in the US but also China today is somewhat inflationary and supportive of oil prices. MF Global’s John Kilduff said that equities may perhaps bottom here, as a sign that perhaps we have found a bottom right now for oil as well. Crude Surges Fed's interest rate cut priced into the market Dollar crumbles in anticipation of rate cut Continued weakness in dollar supports prices Inventory mixed in terms of supplies IEA says not enough investment in oil production IEA says may see a drop in annual oil output of 9% a year Rate cut in US & China support prices

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