Iran Said Oil Market Oversupplied, Prices To Soar

Crude oil prices stopped their drop Wednesday and rose again as US government data demonstrated heating stocks remained 16% down on 2003 levels.
US light crude rose 73 cents to $46.84 a barrel on the NYMEX, ceasing crude?s steep drop almost $10 since late October's record high of $55.67. During the session it even broke over $47.

London?s Brent crude futures were up 42 cents at $42.76 a barrel on the IPE.
Heating oil supplies rose 700,000 barrels in the same period, but they remain 16 per cent below the year-ago level as refiners aren?t able to boost production as much as it would be preferably, and Europe and Asia compete for barrels.

The oil minister of OPEC?s second biggest producer Iran yesterday said that world oil markets were oversupplied, the first sign of unease in the cartel over falling prices.

OPEC?s reference crude oil basket has fallen to its lowest level since mid-July at $35.94. But an early or severe winter could put stress on stocks, prompting a fresh buying by funds.