Heating oil customers await Opec announcement

5 September 2008

Heating oil prices could soon be increasing, as speculation mounts that that Opec will cut crude oil production.

The oil producing cartel is meeting in Vienna on Tuesday and is expected to make the decision in response to falling prices.

Some Opec nations, particularly Saudi Arabia, are thought to be producing more than their targets.

And although this extra supply has brought the cost of a barrel down from its record high of $147 (£83) to around $110, analysts believe the cartel will take steps to curb the fall.

"The focus of the debate among OPEC ministers gathering in Vienna next week will not be whether there is a need to cut crude oil production, but rather when," said a report by PFC Energy.

Earlier this week Iran's Opec governor, Mohammad Al Khatibi, told the Mehr News Agency that a reduction would be considered in Vienna, making now a good time to buy home heating oil.

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