Oil prices steady in Asia
Wednesday, 27 August 2008
SINGAPORE, Aug 26 (AFP): World oil prices held steady in Asia today in a market torn between fears of falling demand and worries that OPEC might cut production, analysts said.
In afternoon trade New York's main contract, light sweet crude for October, fell six cents to 115.05 dollars a barrel after a gain of 52 cents to 115.11 dollars at the close of floor trading Monday on the New York Mercantile Exchange.
Brent North Sea crude for October fell five cents to 113.98 dollars a barrel. The contract had gained 11 cents to settle at 114.03 dollars in London Monday.
Prices have sunk from record-highs above 147 dollars a barrel in early July after surging from 100 dollars at the start of the year.
Analysts say the struggling economy in the United States, the world's biggest energy consumer, has helped curb demand for oil.
There are also fears of slowing demand in Europe and elsewhere.
"What we're seeing is people are afraid that if it goes much lower, OPEC might do something to keep it up," said David Johnson, an oil analyst with Macquarie Securities in Hong Kong.
The Organisation of the Petroleum Exporting Countries (OPEC) may decide to cut the cartel's oil output quota in the face of falling crude prices, energy consultancy CGES said last week.
OPEC member Venezuela also said it would ask the cartel, which produces about 40 per cent of the world's oil, to cut production at its September meeting if downward price pressure continues.
In afternoon trade New York's main contract, light sweet crude for October, fell six cents to 115.05 dollars a barrel after a gain of 52 cents to 115.11 dollars at the close of floor trading Monday on the New York Mercantile Exchange.
Brent North Sea crude for October fell five cents to 113.98 dollars a barrel. The contract had gained 11 cents to settle at 114.03 dollars in London Monday.
Prices have sunk from record-highs above 147 dollars a barrel in early July after surging from 100 dollars at the start of the year.
Analysts say the struggling economy in the United States, the world's biggest energy consumer, has helped curb demand for oil.
There are also fears of slowing demand in Europe and elsewhere.
"What we're seeing is people are afraid that if it goes much lower, OPEC might do something to keep it up," said David Johnson, an oil analyst with Macquarie Securities in Hong Kong.
The Organisation of the Petroleum Exporting Countries (OPEC) may decide to cut the cartel's oil output quota in the face of falling crude prices, energy consultancy CGES said last week.
OPEC member Venezuela also said it would ask the cartel, which produces about 40 per cent of the world's oil, to cut production at its September meeting if downward price pressure continues.