Oil prices stabilize around $19<\/p>\n
Agence France-Presse, London<\/p>\n
The price of oil stabilised on Wednesday after two days of
\nvolatile trading, as the market digested the latest remarks from
\nworld crude producers about a possible pact to restrict output so
\nas to give prices a boost.<\/p>\n
A barrel of Brent North Sea crude for January delivery rose 15
\ncents in early deals to 18.90 dollars. Overnight, the December
\nlight sweet crude contract closed in New York at 19.15 dollars a
\nbarrel, up 72 cents.<\/p>\n
Analysts said that after a week during which crude prices were
\nmarked down sharply, the market was now growing more sanguine
\nabout a possible deal between the Organization of Petroleum
\nExporting Countries (OPEC) and its rivals on output cuts.<\/p>\n
OPEC wants rival producers outside the 11-nation club to sign
\nup to output cutbacks of their own before it will proceed with a
\npromised cut of 1.5 million barrels per day.<\/p>\n
Fears that non-OPEC would resist such a pact drove oil prices
\ndown sharply in recent sessions to a 29-month nadir of 16.65
\ndollars a barrel in London on Monday.<\/p>\n
But since then, big producers Mexico and Norway have promised
\ncuts as long as Russia follows suit. Moscow had hitherto waxed
\nreluctant about cutbacks, but has made more conciliatory noises
\nin recent days.<\/p>\n
\"The market is clearly becoming optimistic that a non-OPEC
\ndeal can be reached, but there is also an element of positive
\nsentiment filtering through from the stock markets about the
\nworld economy,\" said Lawrence Eagles, an oil expert with the GNI
\nbrokerage.<\/p>\n
OPEC oil price rebounds<\/p>\n
The OPEC basket oil price rebounded above 17 dollars, the
\ncartel said Wednesday, after key rival producers Russia and
\nNorway hinted at compromise in a tense stand-off launched last
\nweek.<\/p>\n
The price, used by the grouping to set its production policy,
\nstood at 17.06 dollars on Tuesday, after plunging to a low-point
\nof 15.85 dollars on Monday, according to OPEC secretariat
\ncalculations.<\/p>\n
The OPEC basket price, an average of seven world crudes, has
\nslumped to two-year lows since the September 11 terror attacks
\ncompounded fears of a world economic slowdown.<\/p>\n
It slipped even further after OPEC ministers last Wednesday
\nlaunched a challenge to its non-OPEC rivals, saying they would
\ncut output by 1.5 million barrels per day (bpd) but only if they
\ncut by 500,000 bpd.<\/p>\n
But markets were boosted Tuesday by signs that Norway was
\nready to cut its production if Russia does, and comments from
\nMoscow that it could consider \"supplementary measures\" to boost
\nsagging prices.<\/p>",
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