Oil at $50 Looms as OPEC Plans Cut, Keeps to Quota - Bloomberg

March 9 (Bloomberg) -- OPEC’s record production cuts aredraining the glut in world oil markets, leading traders to betthat $50 crude is two months away.

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Ever since oil began its 69 percent plunge from a record$147.27 a barrel in July, traders have been looking for a bottom.Now that the Organization of Petroleum Exporting Countriesreduced supplies 13 percent since September, inventories arefalling 1.4 million barrels a day, according to PVM OilAssociates Ltd., the world’s biggest broker of energy tradesbetween banks. OPEC will limit exports again when the group meetsMarch 15, according to a survey by Bloomberg News. OPEC states have more of an incentive than ever to restrictoutput because the combination of declining prices and the globalrecession will reduce earnings 59 percent this year to $402billion, according to the U.S. Energy Department. Crude demandwill drop for a second year, the first back-to-back decline since1983, the International Energy Agency said.

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