Crude Futures on the Decline

The EIA is estimating that OPEC pumped 30.01 million barrels per day in January, as opposed to 30.34 million barrels a day in December. These figures indicate that the OPEC cartel's crude oil production was greater than the target amount set at its most recent meeting. OPEC reached only half of its goal of cutting 1.2 million barrels a day by the end of January, many analysts believe.

"Strong production gains in the Caspian Sea, Russia, Africa, Brazil and the United States will likely offset declining production in the North Sea, the Middle East and Mexico," Meir wrote in his report.

In the equities market, Devon Energy(DVN Quote) was on the move after it posted earnings that were in line with analyst expectations. Lately, Devon's stock fell 92 cents to $68.88.

Excluding certain items, Devon earned $1.36 a share on sales of $2.61 billion. Sales were down from $3.19 billion a year earlier. The company said in a press release that the decline in revenue was due to lower natural gas prices and a falloff in oil and gas production.

Calyon Securities upgraded the stock of oil and gas equipment manufacturer National Oilwell Varco (NOV Quote), but recently the shares were down 6 cents at $65.62. Calyon also increased the company's price target from $71 to $84.