Oil prices rise in Asia
Wednesday, 30 July 2008
SINGAPORE, July 29 (AFP): World oil prices rose tooday but remained well off record highs reached earlier this month, as the market watched for more signs of slowing demand, analysts said.
New York's main contract, light sweet crude for September delivery, rose 11 cents to 124.84 dollars a barrel after advancing 1.46 dollars to close at 124.73 Monday at the New York Mercantile Exchange.
Brent North Sea crude for September delivery was 36 cents higher at 126.20. The contract climbed 1.32 dollars to settle at 125.84 on Monday in London.
The benchmark New York contract has lost more than 22 dollars while Brent has fallen more than 21 dollars since both struck all-time highs above 147 dollars on July 11.
"It's becoming very, very clear demand in the US is dropping," said Jason Feer, vice president and Asia-Pacific general manager for energy market analysts Argus Media Ltd.
Prices have eased recently while concerns mount about demand for oil in the face of prolonged weakness in the US economy, the world's biggest energy consumer, analysts say.
Oil prices broke through the 100-dollar level at the start of the year and then rose to a series of record highs on concerns about supply, stoked in part by tensions between the West and Iran over that country's nuclear programme.
Unrest in key African producer Nigeria was another factor, analysts said.
Anglo-Dutch oil giant Shell cut output in southern Nigeria Monday after militants sabotaged at least one of its pipelines supplying crude, officials said.
The market also continued to track developments in oil-rich Iran's standoff with the West over Iran's nuclear programme, analysts said.
Crude oil prices above 120 dollars a barrel are "abnormal" and could fall to around 78 dollars under the right circumstances, the president of the Organisation of the Petroleum Exporting Countries (OPEC) cartel said today.
"If the dollar continues to strengthen and the political situation (regarding Iran) improves, then the long-term prices will be about 78 dollars," Chakib Khelil told reporters in Jakarta.
New York's main contract, light sweet crude for September delivery, rose 11 cents to 124.84 dollars a barrel after advancing 1.46 dollars to close at 124.73 Monday at the New York Mercantile Exchange.
Brent North Sea crude for September delivery was 36 cents higher at 126.20. The contract climbed 1.32 dollars to settle at 125.84 on Monday in London.
The benchmark New York contract has lost more than 22 dollars while Brent has fallen more than 21 dollars since both struck all-time highs above 147 dollars on July 11.
"It's becoming very, very clear demand in the US is dropping," said Jason Feer, vice president and Asia-Pacific general manager for energy market analysts Argus Media Ltd.
Prices have eased recently while concerns mount about demand for oil in the face of prolonged weakness in the US economy, the world's biggest energy consumer, analysts say.
Oil prices broke through the 100-dollar level at the start of the year and then rose to a series of record highs on concerns about supply, stoked in part by tensions between the West and Iran over that country's nuclear programme.
Unrest in key African producer Nigeria was another factor, analysts said.
Anglo-Dutch oil giant Shell cut output in southern Nigeria Monday after militants sabotaged at least one of its pipelines supplying crude, officials said.
The market also continued to track developments in oil-rich Iran's standoff with the West over Iran's nuclear programme, analysts said.
Crude oil prices above 120 dollars a barrel are "abnormal" and could fall to around 78 dollars under the right circumstances, the president of the Organisation of the Petroleum Exporting Countries (OPEC) cartel said today.
"If the dollar continues to strengthen and the political situation (regarding Iran) improves, then the long-term prices will be about 78 dollars," Chakib Khelil told reporters in Jakarta.