Oil trades near record levels
Thursday, 3 July 2008
SINGAPORE, July 2 (AFP): World oil traded near record high levels around 142 dollars today after the president of OPEC talked of uncertainty surrounding future investment in energy facilities that could boost crude output.
New York's main oil futures contract, light sweet crude for August delivery, was 1.06 dollars higher at 142.03 dollars a barrel from a record close of 140.97 dollars Tuesday at the New York Mercantile Exchange.
Brent North Sea oil for August delivery was 1.12 dollars higher at 141.79 dollars a barrel after an all-time settlement high of 140.67 dollars in London.
On Monday both contracts reached historic intra-day highs, 143.67 dollars for the New York contract and 143.91 dollars for Brent.
OPEC president Chakib Khelil, speaking at a conference in Madrid, said the oil producers' cartel was concerned about future demand.
"The concern we have is about the security of demand," Khelil, who is also Algeria's energy minister, told delegates at the World Petroleum Congress.
He said there were "big uncertainties" about making huge investments in energy infrastructure to increase output from the 13 OPEC member countries, which currently pump about 40 per cent of world oil.
Global oil prices have doubled in the past year and have risen by more than 40 per cent since the start of 2008 when they breached 100 dollars for the first time, triggering fears over inflation and slower economic growth.
Consumer countries blame record prices on tight supplies amid strong demand and unrest in producer countries such as Iran, Iraq and Nigeria.
New York's main oil futures contract, light sweet crude for August delivery, was 1.06 dollars higher at 142.03 dollars a barrel from a record close of 140.97 dollars Tuesday at the New York Mercantile Exchange.
Brent North Sea oil for August delivery was 1.12 dollars higher at 141.79 dollars a barrel after an all-time settlement high of 140.67 dollars in London.
On Monday both contracts reached historic intra-day highs, 143.67 dollars for the New York contract and 143.91 dollars for Brent.
OPEC president Chakib Khelil, speaking at a conference in Madrid, said the oil producers' cartel was concerned about future demand.
"The concern we have is about the security of demand," Khelil, who is also Algeria's energy minister, told delegates at the World Petroleum Congress.
He said there were "big uncertainties" about making huge investments in energy infrastructure to increase output from the 13 OPEC member countries, which currently pump about 40 per cent of world oil.
Global oil prices have doubled in the past year and have risen by more than 40 per cent since the start of 2008 when they breached 100 dollars for the first time, triggering fears over inflation and slower economic growth.
Consumer countries blame record prices on tight supplies amid strong demand and unrest in producer countries such as Iran, Iraq and Nigeria.