Malcolm Graham-Wood
Independent Analyst
My comment on Friday that we had seen the faintest signs of a base forming in the oil price were backed up by a further rally then and again this morning. Today has seen another dollar or so added to the prices but I am not for one minute suggesting it is anything but a technical rally combined with some year ending short closing. Indeed, Opec Ministers meeting in Abu Dhabi at the weekend continued to hold the hard line from their last meeting with Ali al-Naimi saying that ‘we are not going to cut’ and that he was ‘not pleased’ with prices. Having said that he expects some sort of recovery based on a more positive view of world economic growth, in the meantime he suggests that ‘the most efficient producers be allowed to produce’ which is a bit chilling outside of the Middle East…
The Baker Hughes rig count which we are all watching again showed another fall on Friday, after last weeks drop of 27 rigs this week it was down by 18 to 1875.
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