Oil prices near fresh record
Wednesday, 12 September 2007
SINGAPORE, Sept 11 (AFP): World oil prices came within sight of a fresh record in Asian trade today as OPEC ministers headed into crunch talks over the cartel's output.
There were signs in Vienna that the group might bend to the will of Saudi Arabia and increase production.
New York's main futures contract, light sweet crude for delivery in October, was 41 cents higher at 77.90 dollars a barrel from 77.49 dollars in late US trades Monday.
The price was not far off its record high of 78.77 dollars set on August 1.
Brent North Sea crude for October delivery was at 75.76 dollars a barrel.
Analysts warned that inaction by the Organisation of the Petroleum Exporting Countries could send prices above 80 dollars.
A majority of ministers in the cartel have rejected pressure from consuming nations for higher supplies, but Saudi Arabia, the biggest producer in the 12-member cartel, may still prevail with a campaign for an output increase of 500,000 barrels per day, analysts said.
High oil prices have become an added burden for the world economy in addition to financial market turbulence and a crisis in the US subprime housing market.
Saudi Arabia is believed to be worried that high oil prices could drag on economic growth, which would reduce demand for oil in the long-term.
The International Energy Agency, the energy watchdog for the world's rich, oil-consuming countries, warned again Monday about a shortage of supply in coming months.
"The current market is very tight. We see demand increasing towards the end of the year, certainly towards the beginning of next year," new IEA chief Nobua Tanaka said in Berlin.
OPEC was to make a formal decision Tuesday at the cartel's headquarters in Vienna.
The group produces about a third of world crude supplies. It has an output target of 25.8 million barrels, but 10 members constrained by output limits are estimated to be producing almost a million more barrels a day than this.
There were signs in Vienna that the group might bend to the will of Saudi Arabia and increase production.
New York's main futures contract, light sweet crude for delivery in October, was 41 cents higher at 77.90 dollars a barrel from 77.49 dollars in late US trades Monday.
The price was not far off its record high of 78.77 dollars set on August 1.
Brent North Sea crude for October delivery was at 75.76 dollars a barrel.
Analysts warned that inaction by the Organisation of the Petroleum Exporting Countries could send prices above 80 dollars.
A majority of ministers in the cartel have rejected pressure from consuming nations for higher supplies, but Saudi Arabia, the biggest producer in the 12-member cartel, may still prevail with a campaign for an output increase of 500,000 barrels per day, analysts said.
High oil prices have become an added burden for the world economy in addition to financial market turbulence and a crisis in the US subprime housing market.
Saudi Arabia is believed to be worried that high oil prices could drag on economic growth, which would reduce demand for oil in the long-term.
The International Energy Agency, the energy watchdog for the world's rich, oil-consuming countries, warned again Monday about a shortage of supply in coming months.
"The current market is very tight. We see demand increasing towards the end of the year, certainly towards the beginning of next year," new IEA chief Nobua Tanaka said in Berlin.
OPEC was to make a formal decision Tuesday at the cartel's headquarters in Vienna.
The group produces about a third of world crude supplies. It has an output target of 25.8 million barrels, but 10 members constrained by output limits are estimated to be producing almost a million more barrels a day than this.