Oil prices turn higher in Asian trade
Tuesday, 29 July 2008
SINGAPORE, July 28 (AFP): World oil prices turned higher in Asian trade today while the market faces signs of slowing demand and rising supply, analysts said.
New York's main contract, light sweet crude for September delivery, rose 30 cents to 123.56 dollars a barrel.
The contract dropped 2.23 dollars to close at 123.26 on the New York Mercantile Exchange Friday.
Brent North Sea crude for September rose 12 cents to 124.64.
The benchmark New York contract has lost about 24 dollars while Brent has fallen almost 23 dollars since both struck all- time highs above 147 dollars on July 11.
"A large part of that is just a shift in market sentiment focussed on the soft trend in US consumption, and the belief that Saudi Arabia has increased production," said David Moore of the Commonwealth Bank of Australia.
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 said.
Saudi Arabia is the largest producer in the Organisation of the Petroleum Exporting Countries (OPEC) cartel, which produces about 40 per cent of the world's oil.
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.
The price of oil could drop to between 70 and 80 dollars a barrel if the US dollar strengthens and concerns over Iran are reduced, OPEC chief Chakib Khelil said Saturday.
New York's main contract, light sweet crude for September delivery, rose 30 cents to 123.56 dollars a barrel.
The contract dropped 2.23 dollars to close at 123.26 on the New York Mercantile Exchange Friday.
Brent North Sea crude for September rose 12 cents to 124.64.
The benchmark New York contract has lost about 24 dollars while Brent has fallen almost 23 dollars since both struck all- time highs above 147 dollars on July 11.
"A large part of that is just a shift in market sentiment focussed on the soft trend in US consumption, and the belief that Saudi Arabia has increased production," said David Moore of the Commonwealth Bank of Australia.
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 said.
Saudi Arabia is the largest producer in the Organisation of the Petroleum Exporting Countries (OPEC) cartel, which produces about 40 per cent of the world's oil.
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.
The price of oil could drop to between 70 and 80 dollars a barrel if the US dollar strengthens and concerns over Iran are reduced, OPEC chief Chakib Khelil said Saturday.