Oil firmer in Asia
Afp, Singapore
Oil prices were firmer in Asian trade Friday as Opec's planned February production cut took effect and the market focused on the cold winter weather in the United States, dealers said. At 2:10 pm (0610 GMT), New York's main oil futures contract, light sweet crude for delivery in March, was up 22 cents to 57.52 from 57.30 dollars a barrel in late US trades. Brent North Sea crude for March delivery was up 28 cents to 57.00 dollars. Victor Shum, senior principal at energy consultancy Purvin and Gertz in Singapore, said market sentiment has shifted towards higher oil prices. "This bullish sentiment comes because of the cold weather in the northeastern United States," he said. "Opec's announced production cuts have also started and Saudi Arabia said that they will do their share of reducing supply." The Organisation of Petroleum Exporting Countries, meeting in Nigeria in December, decided to cut production by 500,000 barrels per day (bpd) from February 1, following a cut of 1.2 million bpd in November. A report by The Wall Street Journal, which cited an unnamed Saudi official Tuesday, said oil kingpin Saudi Arabia was to reduce its oil production by another 158,000 bpd from February 1, with more cuts on the way. "On the supply and demand fundamentals front, the market is tightening ... Opec is cutting supply. Whether it is a full compliance or partial compliance, demand remains strong because of the late winter weather," Shum said. "In the short-term, the market is likely to stay in the 55 to 60 dollars range."
| 
