US Energy Dept. sees oil demand rising in 2007

Speculation that OPEC could decide to implement further production cuts during its meeting in Nigeria sent crude oil prices higher on Tuesday. Some cartel officials were quoted as saying that the cut is expected to add 500,000 barrels per day to the 1.2 million barrel per day cut introduced in November. Meanwhile, the US Energy Department is standing by its November prediction that global oil demand will go up by 1.5 million barrels per day next year. It also said that consumption of oil products in the US will be 300,000 barrels per day higher in 2007. Demand growth is also expected to be strong in China and in the Middle East.

January contracts for Brent crude added 51 cents in London in afternoon trade, to $62.35 per barrel, while West Texas Intermediate crude for January delivery was 66 cents higher to $61.88 per barrel on the New York Mercantile Exchange.