World oil prices extend losses on demand worries
Thursday, 23 October 2008
SINGAPORE, Oct 22 (AFP): World oil prices weakened in Asian trade today on renewed worries about energy demand in the face of slowing global growth, dealers said.
New York's main contract, light sweet crude for December delivery, fell 2.58 dollars to 69.60 dollars a barrel from its close of 72.18 dollars in the United States Tuesday. The contract for November expired Tuesday, closing at 70.89 dollars.
Brent North Sea crude for December delivery dropped 2.50 dollars to 67.22 dollars.
Crude prices have rallied in recent sessions amid growing signals OPEC will likely announce plans to cut its production when the oil cartel meets Friday in Vienna in a specially arranged session.
However, worries about weaker energy consumption as the world's developed economies hit a weak patch have investors fretting, dealers said.
Ahead of the OPEC meeting, key members of the oil cartel have already voiced their support for production levels to be cut to shore up falling prices.
Iran's oil minister said yesterday that Tehran believes OPEC should cut production by between two million and 2.5 million barrels a day, and that prices could go higher than 150 dollars a barrel.
"The market should find a stable condition, and given the eight to 10 per cent decrease in demand, and also given the oil stockpile, I think a decrease of between two and 2.5 million barrels a day can bring a stable status to the market," Gholam Hossein Nozari said at a press conference in Tehran.
Qatar's Energy Minister Abdallah bin Hamad al-Attiyah said yesterday that the "best price" for oil was 80 to 90 dollars a barrel while Libya said Monday it backed an output cut of more than one million barrels a day.
The 12 members of OPEC together pump about 40 per cent of the world's crude.
Crude futures have halved in value from record highs above 147 dollars in July.
Crude prices slumped below 70 dollars last week for the first time in more than a year, dragged by prospects of reduced demand in the face of a global economic slowdown stemming from the ongoing world financial crisis.
New York's main contract, light sweet crude for December delivery, fell 2.58 dollars to 69.60 dollars a barrel from its close of 72.18 dollars in the United States Tuesday. The contract for November expired Tuesday, closing at 70.89 dollars.
Brent North Sea crude for December delivery dropped 2.50 dollars to 67.22 dollars.
Crude prices have rallied in recent sessions amid growing signals OPEC will likely announce plans to cut its production when the oil cartel meets Friday in Vienna in a specially arranged session.
However, worries about weaker energy consumption as the world's developed economies hit a weak patch have investors fretting, dealers said.
Ahead of the OPEC meeting, key members of the oil cartel have already voiced their support for production levels to be cut to shore up falling prices.
Iran's oil minister said yesterday that Tehran believes OPEC should cut production by between two million and 2.5 million barrels a day, and that prices could go higher than 150 dollars a barrel.
"The market should find a stable condition, and given the eight to 10 per cent decrease in demand, and also given the oil stockpile, I think a decrease of between two and 2.5 million barrels a day can bring a stable status to the market," Gholam Hossein Nozari said at a press conference in Tehran.
Qatar's Energy Minister Abdallah bin Hamad al-Attiyah said yesterday that the "best price" for oil was 80 to 90 dollars a barrel while Libya said Monday it backed an output cut of more than one million barrels a day.
The 12 members of OPEC together pump about 40 per cent of the world's crude.
Crude futures have halved in value from record highs above 147 dollars in July.
Crude prices slumped below 70 dollars last week for the first time in more than a year, dragged by prospects of reduced demand in the face of a global economic slowdown stemming from the ongoing world financial crisis.