Welcome truce

8 September 2009 By Edward Hadas Follow @edwardhadas

For four months, oil has been floating at between $60 and $75. There s no absolutely right value, although $70 feels like a reasonable resting point. Market stability would help almost everyone. But Opec will find it hard to steady the oil price in an overly financial world.

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Opec will meet in Vienna on September 9. The oil producers' cartel is not expected to change its quotas. In advance of the meeting, Saudi Arabia's oil minister, Ali alNaimi said, The market is in a very good shape, very well supplied. The price is good for everybody, consumers, producers.

Inventories of crude oil and oil products in the OECD area at the end of June were 5.5% higher than twelve months earlier, according to the International Energy Agency. That was the equivalent of 61.7 days of demand, compared to the 52 days Opec considers consistent with a stable market.

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