Indian Stock Market

LONDON, Sept 12 (Reuters) — Oil hit a record of $ 80 a barrel today after = OPEC’s modest output increase failed to allay winter supply concerns. Dealer= s focused on tight inventories in the United States ahead of peak winter dem= and. =20 United States light crude for October delivery was $79.10 a barrel at 12:1= 5 p.m. New York time, up 87 cents, after setting a record of $79.29 earlier = in the day. The previous record, $78.77, was reached on Aug. 1. London Brent= crude was up 85 cents at $77.23. =20 Crude oil stocks in top consumer the United States fell 7.1 million barrel= s last week to their lowest level in eight months amid a drop in imports, ac= cording to the Energy Information Administration. Analysts had expected a de= cline of 2.4 million barrels. =20 “The reality is that the crude tightness in Europe and Asia has begun to a= ffect the U.S. market in a big way,” said Antoine Halff, an analyst at Fimat= Research in New York. “In retrospect, it validates OPEC’s decision to incre= ase production.” =20 OPEC agreed at its meeting in Vienna on Tuesday to raise crude output by 5= 00,000 barrels per day effective Nov. 1, in a gesture to consumer nations co= ncerned about the economic impact of high oil prices and rapidly diminishing= fuel stocks. =20 “The OPEC outcome was not enough of a shocker to turn around a market that= likes to read extremes,” said Olivier Jakob of oil consultancy Petromatrix. =20 The new output deal from the Organization of the Petroleum Exporting Count= ries will reverse most of the 1.7 million barrels per day of cuts agreed by = the group since October 2006. The 10 countries bound by that agreement were already pumping almost one m= illion barrels per day above their nominal ceiling. =20 “It legitimizes the excess production that was there relative to OPEC’s pr= evious implied quota and not much more,” said Harry Tchilinguirian, senior o= il market analyst at BNP Paribas.=20 =20 “So, anything short of 1 million barrels a day looking ahead to winter bal= ances would not be enough.” OPEC had to balance consumers’ concerns about sh= rinking stocks of oil ahead of winter with fears of an economic slowdown in = top consumer the United States that could dampen oil demand. =20 OPEC member Iraq is excluded from the production agreement, as is Angola, = a new member. “We think that OPEC has been somewhat less aggressive in its a= dditional supply decision as it waits to see if Iraq can sustain a 250 thous= and barrel per day flow from the north,” Mr. Jakob said. =20 The International Energy Agency, which has been urging OPEC to pump more o= il, predicted world oil demand will grow more slowly than expected in the la= st quarter of 2007 and next year. =20 The agency’s latest monthly report, published today, also suggested high p= rices might further curb consumption. The agency, adviser to 26 industrializ= ed countries, said it was too early to assess the impact of fallout from the= mortgage crisis in the United States on its economy. =20 A rash of fires at BP’s oil fields in Alaska’s North Slope added to the re= cord run, though BP said the accidents had minimal impact to operations. =20 The oil market also was getting support from concerns over energy supplies= from Mexico, where a leftist militant group blew up several fuel pipelines = this week for the second time since July. Mexico has said the blasts cut 25 = percent of the country’s natural gas flow, but added that exports were unaff= ected. =20 The rebel group, known as EPR, said it will continue its attacks until the= Mexican government releases two of its guerrilla organizers.
Safe Harbor Statement: =20 Some forward looking statements on projections, estimates, expectations & ou= tlook are included to enable a better comprehension of the Company prospects= . Actual results may, however, differ materially from those stated on accoun= t of factors such as changes in government regulations, tax regimes, economi= c developments within India and the countries within which the Company condu= cts its business, exchange rate and interest rate movements, impact of compe= ting products and their pricing, product demand and supply constraints. =20 Nothing in this article is, or should be construed as, investment advice.= =20 =20 =20 =20 =20
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