| Oil prices rose to a new record settlement price | | | | of the world's oil, had long been expected to hold |
| Tuesday as traders turned their attention to a | | | | production levels steady at the meeting. But rumors |
| government inventory report expected to show tight | | | | started circulating on Monday that Saudi Arabia was |
| supplies and shrugged off OPEC's decision to boost | | | | campaigning to boost production. Many analysts think |
| output. | | | | the Saudis are worried high oil prices will crimp |
| Even factoring in OPEC's decision to increase oil | | | | demand for crude oil, which could hurt OPEC nations |
| production by 500,000barrels per day starting Nov. 1, | | | | in the long run. |
| "supplies are tight," said Addison Armstrong, an | | | | However, some analysts interpreted the fact that |
| analyst at TFS Energy Futures LLC. And according to | | | | Tuesday's meeting lasted longer than expected as a |
| analyst predictions, they're going to get even tighter. | | | | sign the Saudis had a hard time persuading other |
| Analysts surveyed by Dow Jones Newswires, on | | | | OPEC nations to boost production. Tim Evans, an |
| average, expect Wednesday's report from the | | | | analyst at Citigroup Inc., thinks some OPEC members |
| Energy Department's Energy Information | | | | are worried demand for oil will slow in the fourth |
| Administration will say that crude oil inventories fell by | | | | quarter, which combined with more supplies could |
| 2.7 million barrels in the week ended Sept. 7. | | | | mean sharply lower prices. Many OPEC countries |
| Investors had already priced in OPEC's increase, and | | | | already produce more oil than their quotas. But Omar |
| many were looking for a larger production boost, | | | | Farouk Ibrahim, spokesman for the Organization of |
| analysts said. Light, sweet crude oil for October | | | | Petroleum Exporting Countries, said the announced |
| delivery rose 74 cents to settle at $78.23 a barrel on | | | | increase would be based on the group's current |
| the New York Mercantile Exchange after alternating | | | | production, not quotas ?a |
| frequently between gains and losses. The settlement | | | | Meaning the 12-nation cartel will be adding actual oil to |
| price bested the previous record, set July 31, by 2 | | | | the market. That translates into a quota increase of |
| cents. Oil's rise pulled October gasoline 0.25 cent | | | | nearly 1.4 million barrels per day, Evans said. "This is a |
| higher to settle at $1.9811 a gallon after the contract | | | | big number," Evans said, adding that it would take |
| spent much of the day in negative territory. In other | | | | futures traders a while to digest its significance. "This |
| Nymex trading, heating oil futures rose 1.11 cents to | | | | is not something that the market's going to adjust to |
| settle at $2.1827 a gallon, and October natural gas | | | | in a few minutes." At the pump, meanwhile, gas |
| added 4.3 cents to settle at $5.934 per 1,000 cubic | | | | prices slid 0.5 cent overnight to a national average of |
| feet. | | | | $2.814 a gallon, according to AAA and the Oil Price |
| In London, October Brent crude oil rose 90 cents to | | | | Information Service. Retail prices, which typically lag |
| settle at $76.38 a barrel on the ICE Futures | | | | the futures market, peaked at $3.227 in late May. |
| exchange. OPEC, which produces about 40 percent | | | | |