Saudi Arabia and the Arab Gulf States were outvoted by a bloc led by Iran, Venezuela, Libya (Ghaddafi's representative arrived late), Algeria, and Ecuador. It was basically the pro-Western group vs. the anti-Western group and the anti-Western group won. What was voted down was only the formal recognition of the production by members and not necessarily any production increase since most of OPEC cheats by producing more oil than agreed. Coupled with the fall of crude inventory, price rose 1.7% over the previous day's settlement. The rising price reflects analysts' failed expectations but given that crude inventories were drawn down, crude did not really have a big increase.
Today, WTI+$1.72,$100.81; Brent+$1.16,$117.94; RBOB-1.16¢,$2.9803; HO+1.65¢,$3.0935.
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