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OPEC`s latest policy decision to keep output unchanged was no surprise, but the great spur to the market was its new ambition for $75-a-barrel oil and confidence that would not derail economic recovery.
Saudi Arabian Oil Minister Ali al-Naimi, who displayed good humour throughout Thursday`s meeting, said the world was ready for oil at $75-$80 and that could arrive before the end of the year.
Some ministers remained wary, arguing a rally that took oil to six-month highs above $65 a barrel on Thursday was based on sentiment and the return of speculators, rather than fundamentals of supply and demand.
But analysts said Saudi Arabia could be among the best-placed to detect the early signs of an increase in fuel consumption and noted a major shift in OPEC mood.
"I think Naimi`s comments are very significant indeed," said Mike Wittner of Societe Generale.
"Nobody on the planet sells more crude to more refineries than (state oil firm) Saudi Aramco. So when Ali al-Naimi says that he is seeing demand picking up in Asia, Latin America and the Middle East, you have to believe him because he has the facts."
To a lesser extent, the developed world was showing some signs of increased energy use -- or, at least, dwindling stockpiles.
In the United States, the biggest energy consumer, the summer driving season has just begun and the latest U.S. government industry data showed a small fall in gasoline stocks and a big drop in crude inventories.
Analysts detected other more technical signs of a tighter market.
"Many things are moving in the direction, prompt spreads are coming in, floating storage is disappearing, global balances are looking more constructive," said Paul Horsnell of Barclays Capital.
Already the market has doubled from a low of $32.40 in December. That was the weakest in nearly five years and came after an OPEC meeting that announced a record output cut, interpreted by the oil market as a sign of panic.
Thursday`s six-month high followed not just OPEC`s latest no-change decision but the market`s rise on Wednesday above the 200-day moving average.
Read the full here.
Saudi Arabian Oil Minister Ali al-Naimi, who displayed good humour throughout Thursday`s meeting, said the world was ready for oil at $75-$80 and that could arrive before the end of the year.
Some ministers remained wary, arguing a rally that took oil to six-month highs above $65 a barrel on Thursday was based on sentiment and the return of speculators, rather than fundamentals of supply and demand.
But analysts said Saudi Arabia could be among the best-placed to detect the early signs of an increase in fuel consumption and noted a major shift in OPEC mood.
"I think Naimi`s comments are very significant indeed," said Mike Wittner of Societe Generale.
"Nobody on the planet sells more crude to more refineries than (state oil firm) Saudi Aramco. So when Ali al-Naimi says that he is seeing demand picking up in Asia, Latin America and the Middle East, you have to believe him because he has the facts."
To a lesser extent, the developed world was showing some signs of increased energy use -- or, at least, dwindling stockpiles.
In the United States, the biggest energy consumer, the summer driving season has just begun and the latest U.S. government industry data showed a small fall in gasoline stocks and a big drop in crude inventories.
Analysts detected other more technical signs of a tighter market.
"Many things are moving in the direction, prompt spreads are coming in, floating storage is disappearing, global balances are looking more constructive," said Paul Horsnell of Barclays Capital.
Already the market has doubled from a low of $32.40 in December. That was the weakest in nearly five years and came after an OPEC meeting that announced a record output cut, interpreted by the oil market as a sign of panic.
Thursday`s six-month high followed not just OPEC`s latest no-change decision but the market`s rise on Wednesday above the 200-day moving average.
Read the full here.