Energy prices rise sharply after Iran recommends OPEC output cut

[lovuian]

http://newsfromrussia.com/world/2005/12/29/70655.html

Energy futures rose sharply on Wednesday after Iran's oil minister said OPEC should consider cutting production next month.

Light sweet crude for February delivery briefly climbed more than $2, before settling $1.66 higher at $59.82 a barrel on the New York Mercantile Exchange. The price of crude is about 16 percent below its Aug. 30 high of $70.85. Oil prices remained above $60 a barrel for months after Hurricane Katrina disrupted Gulf of Mexico oil and gas output and dipped below $60 recently amid mild winter weather in the U.S.

"The market's been down a bit lately because of the (warmer) weather," said broker Tom Bentz of BNP Paribas Commodity Futures in New York. "So I thought we were going to see a bounce, but this was much more than I expected to see today."

"The Iranian minister's comment got it going a little bit," Bentz said. He said speculators who had been expecting prices to fall even further may have contributed to Wednesday's buying by covering their so-called short positions with bets in the other direction.
more...
It will be interesting to see what OPEC says...

[stop the bleeding]

1. it always is....