By OGJ editors
HOUSTON, Nov. 7 -- Crude oil futures prices settled above $60/bbl Nov. 6 on the New York market after Saudi Arabia Oil Minister Ali al-Naimi mentioned the possibility of additional production quota cuts by the Organization of Petroleum Exporting Countries.
Al-Naimi said OPEC was likely to act if "very high" stockpiles remain worldwide when the cartel meets on Dec. 14.
Qatari Oil Minister Abdullah al-Attiyah also told reporters that markets were oversupplied. "If the market is still unbalanced, we will make another cut, but I cannot predict what the quantity will be," he told Reuters.
On Nov. 7, OPEC Pres. and Nigeria Oil Minister Edmund Daukoru told reporters that OPEC does not have a specific price band.
"OPEC doesn't have a rigid floor," Daukoru said while he was visiting South Korea. Setting a target price band "is not really applicable to the fluid, free market," he added.
The December light, sweet crude contract on the New York Mercantile Exchange settled 88¢ higher at $60.02/bbl on Nov. 6, the highest closing for the front-month contract since Oct. 27. The January contract gained 87¢ to $61.75/bbl.
On the US spot market, West Texas Intermediate also rose by 88¢ to $60.03/bbl. Unleaded gasoline for December delivery gained 2.21¢ to $1.529/gal on NYMEX. Heating oil for the same month soared 4.09¢ to $1.7184/gal.
The December natural gas contract plunged by 39.4¢ to $7.49/MMbtu on NYMEX.
In London, the December IPE contract for North Sea Brent gained 60¢ to $59.75/bbl. The November gas oil contract increased by $13.25 to $536.50/tonne.
The average price for OPEC's basket of 11 benchmark crudes rose by 84¢ to $54.91/bbl Nov. 6.