Oil climbs back above $29 a barrel OPEC warns of possible output cut; Natural gas climbs

By Myra P. Saefong, CBS.MarketWatch.com Last Update: 10:37 AM ET Dec 11, 2000 NewsWatch Latest headlines Get Alerted

NEW YORK (CBS.MW) - Crude futures rose back above $29 a barrel Monday morning, lifted by news that OPEC may decide to cut oil production at its meeting in January following weakness in crude prices over the last two weeks.

Natural-gas futures continued to hit record highs on the heels of cold weather in the central U.S.

Kuwaiti Oil Minister Sheik Saud al-Sabah said Monday that OPEC might decide to reduce production by 1 million barrels per day if crude prices continue to fall, Bridge News reported. Over the last week, futures prices have lost about $3.

On the New York Mercantile Exchange, January crude futures rose to an intraday high at $29.25 a barrel and were last at $29.05, up 61 cents. January unleaded gasoline gained 1.84 cents to 75.50 cents a gallon.

Meanwhile, renewed concerns over Iraqi exports also surfaced Monday. The country has accepted a new 6-month phase of the U.N.'s humanitarian oil-for-food program, as well as reached an agreement on a December selling prices for its oil.

However, loadings at Iraq's ports in Turkey haven't resumed since Iraq halted exports back on Dec. 1, according to Bridge News. The news agency said there are reports that Iraq is again asking its customers for a premium per barrel of oil - this time 40 cents instead of the original 50 cents that originally resulted in the shutdown of exports.

Natural-gas prices climb

Among the heating fuels, January natural gas gained 91.6 cents to $9.50 per million British thermal units after a new all-time high at $9.65. January heating oil rose 3.38 cents to 97.80 cents a gallon.

Prices for heating oil and natural gas climbed on the back of cold weather in the central U.S., which is boosting the need for the heating fuels.

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-- Martin Thompson (mthom1927@aol.com), December 11, 2000