Oil prices steady above 94 dollars in Asia
Wednesday, 14 November 2007
SINGAPORE, Nov 13 (AFP): World oil prices held above 94 dollars per barrel in Asia today in steady trade ahead of a rare weekend summit of the OPEC oil cartel.
In afternoon trade, New York's main futures contract, light sweet crude for December delivery, was three cents higher at 94.65 dollars per barrel after dropping 1.70 dollars in New York trades Monday.
Brent North Sea crude for December delivery was five cents lower at 91.93 dollars per barrel after slumping 1.20 dollars in London.
Oil futures have pulled back from a record-breaking run that pushed them to all-time highs last week of 98.62 dollars in New York and 95.19 dollars in London.
"What really was pushing it up was speculation," said Steve Rowles, an analyst with CFC Seymour in Hong Kong.
Prices should ease further as speculative funds move into other products, with downward pressure also coming from selling ahead of the December contract's expiry this Friday, Rowles said. He added that concerns over slowing US growth were also weighing on the market.
Researchers at Societe Generale said there have been conflicting signals from ministers in the Organisation of the Petroleum Exporting Countries (OPEC) ahead of the leaders' summit in Riyadh this weekend.
Oil ministers of Saudi Arabia and Kuwait said Sunday that OPEC would consider the possibility of raising production if needed.
But in an interview published Tuesday, Saudi minister Ali al- Nuaimi told the Financial Times that "there will be absolutely no discussion" of short-term supply this weekend.
Ministers are also due to hold a special meeting on December 5 in Abu Dhabi.
In September OPEC decided to increase output by 500,000 barrels per day effective November 1.
But prices have climbed nearly 20 dollars since then. Rowles said he did not see the cartel announcing a further production increase this weekend.
In afternoon trade, New York's main futures contract, light sweet crude for December delivery, was three cents higher at 94.65 dollars per barrel after dropping 1.70 dollars in New York trades Monday.
Brent North Sea crude for December delivery was five cents lower at 91.93 dollars per barrel after slumping 1.20 dollars in London.
Oil futures have pulled back from a record-breaking run that pushed them to all-time highs last week of 98.62 dollars in New York and 95.19 dollars in London.
"What really was pushing it up was speculation," said Steve Rowles, an analyst with CFC Seymour in Hong Kong.
Prices should ease further as speculative funds move into other products, with downward pressure also coming from selling ahead of the December contract's expiry this Friday, Rowles said. He added that concerns over slowing US growth were also weighing on the market.
Researchers at Societe Generale said there have been conflicting signals from ministers in the Organisation of the Petroleum Exporting Countries (OPEC) ahead of the leaders' summit in Riyadh this weekend.
Oil ministers of Saudi Arabia and Kuwait said Sunday that OPEC would consider the possibility of raising production if needed.
But in an interview published Tuesday, Saudi minister Ali al- Nuaimi told the Financial Times that "there will be absolutely no discussion" of short-term supply this weekend.
Ministers are also due to hold a special meeting on December 5 in Abu Dhabi.
In September OPEC decided to increase output by 500,000 barrels per day effective November 1.
But prices have climbed nearly 20 dollars since then. Rowles said he did not see the cartel announcing a further production increase this weekend.