Opec have cut production and made it official by announcing it, this is no real surprise as Saudi Arabia the main player in Opec had already given heavy hints that it had already cut production in order to maintain certain prices within the market. In reality the short term shenanigans in the oil market by a few states is not making that much difference. Venezuela and Nigeria have had to increase oil productions to get more revenue from the falling price. Despite Chavez's attempt to annoy America it is apparent that if he needs money and has increased oil production the Americans will not be unhappy. With their high stocks, and with Saudi hinting that a $10 fall could easily be sustained by the Kingdom, one suspects that the bulls will be short lived.

Carbon and some curve prices increased marginally yesterday to reflect the slight rise in oil prices, but all gains were given up today with traders selling into any bullish strengths seen in November and December and this was reflected further down the curve with Summer 07 trading down to £37.50.