* Oil rises above $67, recoups some losses
* Investors eye OPEC's emergency meeting on Friday
* Iran minister says 2 million bpd cut needed
(Updates prices, adds comments from Iran)
By Fayen Wong
PERTH, Oct 23 (Reuters) - Oil bounced back on Thursday to
hover above $67 a barrel, recouping some of the previous
session's 7.5 percent loss, as investors shifted their focus to
a likely OPEC agreement on Friday to cut output.
Iranian Oil Minister Gholamhossein Nozari said on Thursday
that OPEC would need to cut its oil output by 2 million barrels
per day to stabilise the market. []
U.S. light crude for December delivery <CLc1> rose 52 cents
to $67.27 a barrel by 0523 GMT. It settled down $5.20 at $66.75
on Wednesday. London Brent crude <LCOc1> rose 48 cents $65.
"I think it's a technical rebound following the sharp drop
last night. Some would see it as a good buy especially when
there is an OPEC meeting coming up tomorrow and members have
called for a cut in production," said Gerard Rigby, an energy
analyst with Fuel First Consulting in Sydney.
Oil slumped for a second straight session on Wednesday to
the lowest since June 2007 as the dollar hit a two-year high
against the euro. In addition, signs of a slowdown in China --
the world's fastest-growing economy -- intensified fears of
global recession.
However, analysts said a rallying U.S. dollar and growing
fears of a global economic recession combined to rein in oil's
early gains of as much as $1.06.
Oil has plunged more than 50 percent from its record high
above $147 in July and is hovering at a 16-month low as the
financial crisis cuts energy demand in the United States and
other industrial countries.
Although the Organization of the Petroleum Exporting
Countries (OPEC) has traditionally steered away from price
discussions, several OPEC members have said that an acceptable
price range for oil was between $70-$90 a barrel.
Still, analysts warned that the global economic outlook
could limit the impact of any oil supply cuts OPEC might agree
at an emergency meeting on Friday, and the group's president
said output policy would prove a difficult balancing act.
OPEC President Chakib Khelil said oil stocks are high and
some member countries are finding it hard to sell their oil.
[]
"It is a double-edged sword. If they cut supplies by too
much, they could jeopardise the economic recovery. But if they
don't act decisively, their economies may suffer," said Tony
Nunan, assistant manager of risk management at Mitsubishi Corp
in Tokyo.
Data from the U.S. Energy Information Administration showed
U.S. product demand fell 8.5 percent over the four weeks ending
Oct. 17, compared with year-ago levels, while inventory levels
continued to swell. []
U.S. crude oil inventories rose 3.2 million barrels in the
week to Oct. 17, above analyst expectations for a 2.6 million
build. Distillate inventories leaped by 2.2 million barrels
while gasoline inventories rose by 2.7 million barrels.
(Reporting by Fayen Wong; Editing by Sambit Mohanty)
