Analysts were surprised Saudi Arabia was explicit about setting oil-price objectives for the first time in years.
(Eddie Seal/Bloomberg News)
OPEC news sends oil to 6-month high
Analysts were surprised Saudi Arabia was explicit about setting oil-price objectives for the first time in years.
(Eddie Seal/Bloomberg News)
Bloomberg News
/
May 29, 2009
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NEW YORK - Crude oil rose to a six-month high after the Organization of the Petroleum Exporting Countries decided to leave production quotas unchanged and a government report showed US inventories declined.
Saudi oil minister Ali al-Naimi said that the group opted not to alter its targets because "prices are good, the market is in good shape." Oil should stay in a $60 to $70 range for the rest of the year, OPEC said. The gain accelerated after the US Energy Department said US oil supplies fell the most since September.
Crude for July delivery rose $1.63 to $65.08 a barrel on the New York Mercantile Exchange, the highest settlement since Nov. 5.
US crude inventories declined 5.41 million barrels to 363.1 million last week, according to the Energy Department. It was the biggest drop since September, when hurricanes hit the Gulf of Mexico coast. A 150,000-barrel reduction was forecast.
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