Oil prices are heading back up again. There are several factors, the terrorist attack on a US consulate in Saudi Arabia, the occupation of two oil platforms by Nigerian protestors and indications that OPEC might cut output when it meets next. For the first time in six months some OPEC members are talking about possibly reducing extra supplies currently being pumped above the official quotas.

Iran’s Oil Minister, Bijan Zanganeh, said first they must observe production quotas then decide what to do for the next quarter. Libya and Kuwait supported the Iranian view which will be discussed at the regular OPEC meeting in Cairo on Friday. With the cartel pumping at its highest level in 25 years, last week alone crude oil prices fell 14% to their lowest in three months. Industry analysts say OPEC is relieved that prices have cooled but are worried about the speed of the recent correction. The latest bounce in London brought Brent crude up over 60 cents to around $40a barrel.

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