Oil steady in Asia
Tuesday, 24 February 2009
SINGAPORE, Feb 23 (AFP): Oil traded steadily near 40 dollars in Asia today despite an OPEC minister's forecast of additional output cuts by the cartel. New York's main futures contract, light sweet crude for delivery in April, fell six cents to 39.97 dollars a barrel on its first day of trade.
The March contract expired at the close of trade on the New York Mercantile Exchange Friday, down 54 cents at 38.94 dollars a barrel.
Brent North Sea crude for April delivery shed four cents to 41.85 dollars.
"The market returned to a consolidated market... because of a lack of news," said Jonathan Kornafel, Asia director of Hudson Capital Energy, a trading firm.
He said weak global energy demand, counterbalanced by the Organisation of the Petroleum Exporting Countries' (OPEC's) production cuts, were the main factors affecting prices.
Algeria's minister for energy and mines said Sunday that OPEC will probably decide on more cutbacks in output in a bid to prevent further price drops, Algeria's APS news agency reported.
"It is very likely that OPEC will decide on March 15 to reduce production again to stabilise prices that are going down," said Chakib Khelil, referring to the oil cartel's next meeting in Vienna, according to APS.
The minister said OPEC's decision to reduce production by 4.4 million barrels per day in September had prevented oil prices from plummeting even further.
The March contract expired at the close of trade on the New York Mercantile Exchange Friday, down 54 cents at 38.94 dollars a barrel.
Brent North Sea crude for April delivery shed four cents to 41.85 dollars.
"The market returned to a consolidated market... because of a lack of news," said Jonathan Kornafel, Asia director of Hudson Capital Energy, a trading firm.
He said weak global energy demand, counterbalanced by the Organisation of the Petroleum Exporting Countries' (OPEC's) production cuts, were the main factors affecting prices.
Algeria's minister for energy and mines said Sunday that OPEC will probably decide on more cutbacks in output in a bid to prevent further price drops, Algeria's APS news agency reported.
"It is very likely that OPEC will decide on March 15 to reduce production again to stabilise prices that are going down," said Chakib Khelil, referring to the oil cartel's next meeting in Vienna, according to APS.
The minister said OPEC's decision to reduce production by 4.4 million barrels per day in September had prevented oil prices from plummeting even further.