Oil prices lower in Asia
Tuesday, 11 September 2007
SINGAPORE, Sept 10 (AFP): Crude oil prices were lower in Asian trade today, one day ahead of a key OPEC meeting in Vienna, dealers said.
New York's main contract, light sweet crude for October delivery, fell 15 cents to 76.55 US dollars a barrel from 76.70 dollars in late US trades Friday.
Brent North Sea crude for October delivery was off 17 cents at 74.90 dollars.
Oil ministers from the Organisation of the Petroleum Exporting Countries (OPEC) are to meet to decide whether to raise output, although traders are expecting no change in the cartel's production ceilings, dealers said.
High oil prices, which are within striking distance of 80 dollars a barrel, have become an added burden for the world economy in addition to financial market turbulence from a crisis in the US "subprime" housing market.
On Thursday prices in New York had struck 77.43 dollars, not far off the record high of 78.77 dollars hit on August 1.
OPEC producers find themselves under pressure from consumer countries to bring down prices, but they are aware that the outlook for oil demand is clouded given the question marks over global economic growth.
Qatari Oil Minister Abdullah bin Hamad al-Attiyah summed up the dilemma for the 12-member group as he arrived in Vienna Sunday, saying that an increase in supply risked coinciding with a fall in demand because of weakness in the United States.
OPEC produces about a third of world crude supplies. Qatar, Iran, Kuwait, United Arab Emirates and Libya have all spoken in favour of keeping output unchanged.
But the Washington-based oil consultancy PFC Energy, citing oil ministry sources, said that Saudi Arabia, the most influential OPEC member, would make the case for a production hike to help ease the burden of high prices.
Any attempt by Saudi Arabia to sell an increase in output is likely to face opposition, as many members insist the market is adequately supplied with crude and that recent price gains are beyond OPEC's control.
OPEC, which expanded to 12 countries in January when African producer Angola joined, produces about 30.5 million barrels per day.
New York's main contract, light sweet crude for October delivery, fell 15 cents to 76.55 US dollars a barrel from 76.70 dollars in late US trades Friday.
Brent North Sea crude for October delivery was off 17 cents at 74.90 dollars.
Oil ministers from the Organisation of the Petroleum Exporting Countries (OPEC) are to meet to decide whether to raise output, although traders are expecting no change in the cartel's production ceilings, dealers said.
High oil prices, which are within striking distance of 80 dollars a barrel, have become an added burden for the world economy in addition to financial market turbulence from a crisis in the US "subprime" housing market.
On Thursday prices in New York had struck 77.43 dollars, not far off the record high of 78.77 dollars hit on August 1.
OPEC producers find themselves under pressure from consumer countries to bring down prices, but they are aware that the outlook for oil demand is clouded given the question marks over global economic growth.
Qatari Oil Minister Abdullah bin Hamad al-Attiyah summed up the dilemma for the 12-member group as he arrived in Vienna Sunday, saying that an increase in supply risked coinciding with a fall in demand because of weakness in the United States.
OPEC produces about a third of world crude supplies. Qatar, Iran, Kuwait, United Arab Emirates and Libya have all spoken in favour of keeping output unchanged.
But the Washington-based oil consultancy PFC Energy, citing oil ministry sources, said that Saudi Arabia, the most influential OPEC member, would make the case for a production hike to help ease the burden of high prices.
Any attempt by Saudi Arabia to sell an increase in output is likely to face opposition, as many members insist the market is adequately supplied with crude and that recent price gains are beyond OPEC's control.
OPEC, which expanded to 12 countries in January when African producer Angola joined, produces about 30.5 million barrels per day.