Nov. 21 (Bloomberg) -- Crude oil rose for the first time in six days as OPEC members cut production and governments step up efforts to revive economic growth.
The Organization of Petroleum Exporting Counties will trim supplies by 3.8 percent this month as members implement an October agreement, according to consultant PetroLogistics Ltd. The group will meet next week to discuss further reductions. The Bank of Japan said today it will consider pumping more money into the financial system.
“Shipping reports are showing that OPEC is starting to adhere to quotas, which is supporting prices,” said Gene McGillian, an analyst at Tradition Energy in Stamford, Connecticut. “Their meeting in eight days is going to hang over the market.”
Crude oil for January delivery rose 51 cents, or 1 percent, to settle at $49.93 a barrel at 2:42 p.m. on the New York Mercantile Exchange, the first increase in six days. The contract dropped $7.67, or 13 percent this week. Prices have dropped 66 percent since reaching a record $147.27 a barrel on July 11.
Gasoline for December delivery climbed 5.73 cents, or 5.7 percent, to settle at $1.0643 a gallon in New York. It was the biggest one-day gain since Nov. 4.
Thirteen OPEC members, due to meet in Cairo eight days from now, are set to supply 30.98 million barrels a day this month compared with 32.2 million a day in October, Conrad Gerber, PetroLogistics’ founder, said today by telephone from Geneva.
Stimulus Programs
Bank of Japan Governor Masaaki Shirakawa has instructed his staff to study new ways of making money available for lending, such as accepting corporate debt as collateral, the central bank said in a statement in Tokyo today.
The European Union is crafting a coordinated economic- stimulus package to spur its 27-nation economy based on contributions by each EU government.
“Everyone is suffering from the crisis and everyone needs treatment, but not everyone needs the same pill,” European Commission President Jose Barroso told reporters in Brussels yesterday. He said the commission will announce a fiscal-stimulus plan next week “based on member states taking measures suited to their own economic situation.”
Brent crude oil for January settlement increased $1.11, or 2.3 percent, to settle at $49.19 a barrel on London’s ICE Futures Europe exchange. Futures touched $47.40, the lowest since Feb. 22, 2005.
To contact the reporter on this story: Mark Shenk in New York at mshenk1@bloomberg.net
