With demand remaining soft and OPEC maintaining a status quo position, conflicting reports of the state of the economy, rising equity markets and a falling U.S. dollar remain as the primary determinants of crude oil prices. Indeed, with prices averaging $70 a barrel over the past 6 weeks, OPEC officials at this week's meeting in Vienna stated that oil is currently priced at a level acceptable to both consumers and producers. The U.S. Energy Information Administration tends to support this position with its latest prediction that oil prices will stay close to $70 a barrel throughout 2010. Refined products remain sensitive to supply and demand fundamentals. Gasoline wholesale prices should continue to fall over the rest of the month as the industry switches over to more cheaply produced winter grades.

The International Energy Agency on Thursday "revised up its forecast for world oil demand for the third consecutive month, citing stronger-than-expected economic growth in developing Asian economies and North America. Global oil demand in both 2009 and 2010 is now expected to be 500,000 barrels a day higher than the organization's August estimate at 84.4 million barrels a day and 85.7 million barrels a day respectively the IEA said.  Despite the increase, projected oil consumption this year will still be down 2.2% or 1.9 million barrels compared with last year, reflecting the still weak economy."

• The Labor Department reported on this past Friday that the unemployment rate in the U.S. rose to 9.7% in August, the highest it has been since 1983.
• Fed Ex Corp. on Friday offered a signal that the global economy is improving as it rated its first-quarter earnings forecast on better-than-expected international shipments and cost cuts.

OPEC, at its most recent meeting last week, announced that Saudi Arabia and Kuwait are 98% compliant with OPEC production cut quotas.  The United Arab Emirates is at 99%.  Overall, however, OPEC members are at 68% compliance, down from 80% earlier in the year.