Reuters first with news of sharp OPEC oil supply cut that boosts prices

Reuters was first to report estimates from consultant Petrologistics showing a sharp decline in OPEC oil supply in January, leading to a rise in oil prices. OPEC has promised to curb production to bolster prices that have collapsed due to the recession, and energy clients are looking to consultants such as Petrologistics for confirmation that the cuts are being delivered. Reuters alerted the news that production was expected to fall by 1.55 million barrels per day minutes before Dow Jones and Bloomberg. The estimate was cited by analysts as leading to the 6 percent rise in oil prices that day. “I think this represents anticipation that the OPEC production cuts are really happening after the Petrologistics estimates on January OPEC production,” said Tim Evans, energy analyst for Citi Futures Perspective, of oil’s rise on Jan. 23.