* Saudi supertanker hijacked
* Markets sceptical over G20 rescue plan
* OPEC exports down 516,000 bpd to Nov. 4
(Updates prices, recasts, adds details)
By David Sheppard
LONDON, Nov 17 (Reuters) - Oil reversed early losses to
trade back above $58 a barrel on Monday, as concerns over the
strength of demand were offset by increasing evidence of OPEC
output cuts and the hijacking of a Saudi Arabian supertanker.
U.S. light crude for December <CLc1> rose 2 percent, or
$1.24 a barrel to trade at $58.28 by 1543 GMT. Earlier in the
session prices had fallen as low as $55.29l.
Last Thursday, U.S. crude reached a low of $54.67, its
weakest since January 2007.
London Brent crude <LCOc1> rose $1.34 to $55.58 a barrel.
Prices had eased earlier on Monday after a meeting of the
Group of 20 major economies ended with few concrete proposals on
dealing with a global recession.
But news that a fully laden Saudi-owned crude oil tanker has
been hijacked by Somalian pirates off the east coast of Africa
saw prices reverse higher. []
Reports that seaborne exports from the Organization of the
Petroleum Exporting Countries (OPEC) fell by 516,000 barrels per
day (bpd) in the four weeks to Nov. 2 was also boosting buying,
despite signs that the producer group is unlikely to cut output
again until its meeting on Dec. 17. []
[]
"There's some uncertainty in the market following the Saudi
hijacking which is supporting prices," said Sucden trader Robert
Montefusco. "We're also going to see some volatility ahead of
the options expiry on U.S. crude contracts later on Monday."
The expiry of December U.S. crude options -- the right to
buy or sell oil contracts at certain predetermined dates and
prices -- was seen as likely to influence short-term moves on
Monday.
Analysts said there would be a record delivery of "put"
options by traders who have the right to sell oil at prices well
above current levels, following oil's rapid collapse from above
$145 a barrel back in July.
Olivier Jakob at Petromatrix said that the expiry of
December options should see some traders attempting to protect
certain price levels, with much of the focus around $55-$60 a
barrel level.
However, analysts said that longer-term concerns over the
worst financial crisis since the 1930s was likely to keep oil
prices under pressure.
The global slowdown has crushed demand growth estimates for
oil next year. OPEC slashed its forecast for demand for its oil
in 2009 by 220,000 bpd to 30.92 million bpd on Monday.
[]
However, the group's president Chakib Khelil said he saw a
meeting of OPEC ministers in Cairo on Nov. 29 as a brainstorming
session, rather than a production meeting. []
Several OPEC members want further production cuts to try and
boost prices, with Iran looking for a 1-1.5 million bpd
restriction on member output.
(Additional reporting by Christopher Johnson in London and
Fayen Wong in Perth; editing by William Hardy)
