OPEC considers output increase

Crude oil futures fell for the sixth straight day on Monday, and several pieces of news were credited with a combined influence to cause the drop in prices.

First of all, OPEC said they will consider raising oil production next month in order to meet a projected upturn in demand in the third quarter of the year.

OPEC also intimated that it considers $50 per barrel to be a realistic top limit for crude oil prices because that seemed to be a level that would not damage growth.

However there was evidence Monday that the rise in energy prices is currently damaging industry on a global level.

UK producer price inflation data had input prices rising 1.8 percent on a month-to-month basis. More than half of this rise was blamed on the rise in oil prices.

Companies seem to be absorbing this increase rather than passing it on to consumers, as the output price had only risen 0.6 percent in the same period.

Another factor that influenced the drop in oil future prices was the news out of Nigeria that an oil workers’ strike set for Monday had been averted because the union had solved pending labor issues with oil companies and the government.

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