US light crude futures rallied on speculation that Saudi Arabia will make a big production cut in January.

Saudi Arabia, which holds around one fifth of the worlds known oil reserves, is said to have told customers to expect a big cut next month.

Oil prices were also given a boost after it was confirmed that Congress had approved a $14bn bail-out for the US car industry. US crude for January delivery rose $1.45 to settle at $43.52 a barrel.

Prices had fallen earlier in the session after a weekly government report showed gasoline stockpiles had increased more than expected.

The US Department of Energy report also showed a 400,000 barrel a day rise in crude supplies while distillates, used to make heating oil, saw a 5.6m barrel build.

Could be for a wile "if" this is anything to go by XST.

CHEERS STAN

What is the difference between an ETC and ETF?

Exchange traded commodity and exchanged traded fund

Thanks though why is the above an ETF crude oil then?

ETF Securities Limited (ETFS), the global pioneer of exchange traded commodities (ETCs), and provider of Exchange Traded Funds (ETFs) has seen strong inflows into long oil ETCs. This has corresponded with falling interest in ETFS Short Crude Oil (SOIL).

big eid holiday has caused an inevitable cut back in saudi production and well development during december ..... this is the usual scenario at this time of year, though as i have posted elsewhere, saudi has no real interest in exporting oil below $50 in any case

cynic Saudi like all oil exporters has to deliver against forward and long term contacts.What is your guesstimate for the price of oil in 2009?

forward contracts will be music to their ears as price will be significantly above current .... 2009 - average about $80

I gather Iran is storing oil in 4 tankers, though not off the coast of Somalia, for forward delivery

4 tankers hold bugger all in relative terms ..... if holding like saudi, then in subterranean reservoirs

CHECK OUT WWW.321ENERGY.COM

STILL GOING DOWN