Volatile world oil prices ease in Asian trade
Thursday, 11 October 2007
SINGAPORE, Oct 10 (AFP): World oil prices continued their volatility today, falling back in Asian trade after rising sharply in New York and London.
Prices eased ahead of the US government's weekly report on American energy inventories expected later Wednesday.
New York's main futures contract, light sweet crude for delivery in November, was 26 cents lower at 80.00 dollars per barrel in morning trade.
The contract had risen 1.24 dollars to 80.26 dollars per barrel in late New York trade after an earlier tumble.
Brent North Sea crude for November delivery was 18 cents lower at 77.28. The contract had risen 91 cents in London.
"It could go either way based on investor and speculator sentiment," said Tony Nunan, of Mitsubishi Corp's international petroleum business in Tokyo.
Dealers have partly blamed recent falls in oil prices on a strengthening US currency, which makes dollar-denominated commodities more expensive for buyers using other currencies, analysts said.
The dollar, nonetheless, remains relatively weak against other world currencies.
Qatar's energy minister was reported as saying Tuesday that crude oil prices should be more than 100 dollars per barrel.
"If we take into account inflation from 1972 to the present day, the real and fair price for oil should be more than 100 dollars," Abdullah bin Hamad Al-Attiyah said in remarks aired by Al-Jazeera television.
His comments contradicted those of OPEC chief Abdalla Salem el- Badri who said in September that current prices around 80 dollars did not reflect fundamentals and were unlikely to last long.
Global oil prices have more than doubled from around 30 dollars in 2003, and analysts say the forces pushing up prices show no signs of easing, with 100-dollar-a-barrel oil a possibility in 2008.
Prices eased ahead of the US government's weekly report on American energy inventories expected later Wednesday.
New York's main futures contract, light sweet crude for delivery in November, was 26 cents lower at 80.00 dollars per barrel in morning trade.
The contract had risen 1.24 dollars to 80.26 dollars per barrel in late New York trade after an earlier tumble.
Brent North Sea crude for November delivery was 18 cents lower at 77.28. The contract had risen 91 cents in London.
"It could go either way based on investor and speculator sentiment," said Tony Nunan, of Mitsubishi Corp's international petroleum business in Tokyo.
Dealers have partly blamed recent falls in oil prices on a strengthening US currency, which makes dollar-denominated commodities more expensive for buyers using other currencies, analysts said.
The dollar, nonetheless, remains relatively weak against other world currencies.
Qatar's energy minister was reported as saying Tuesday that crude oil prices should be more than 100 dollars per barrel.
"If we take into account inflation from 1972 to the present day, the real and fair price for oil should be more than 100 dollars," Abdullah bin Hamad Al-Attiyah said in remarks aired by Al-Jazeera television.
His comments contradicted those of OPEC chief Abdalla Salem el- Badri who said in September that current prices around 80 dollars did not reflect fundamentals and were unlikely to last long.
Global oil prices have more than doubled from around 30 dollars in 2003, and analysts say the forces pushing up prices show no signs of easing, with 100-dollar-a-barrel oil a possibility in 2008.