World oil prices lower in Asia
Wednesday, 26 November 2008
SINGAPORE, Nov 25 (AFP): World oil prices fell in Asian trade today as euphoria over the US government's bailout of Citigroup faded and investor pessimism about the global economic downturn returned, analysts said.
New York's main futures contract, light sweet crude for January delivery, traded at 53.93 dollars, down 57 cents from Monday's close of 54.50 dollars after soaring 4.57 dollars.
Brent North Sea crude for January delivery dropped 50 cents to 53.43 dollars a barrel after closing Monday in London at 53.93 dollars, up 4.74 dollars.
"It was up significantly yesterday reacting to another bailout on Wall Street," said Victor Shum, a Singapore-based analyst with energy consultancy Purvin and Gertz.
Financial markets soared Monday after the US government pumped billions of dollars into ailing US bank Citigroup and Britain unveiled a mammoth financial stimulus package worth 20 billion pounds (30 billion dollars).
The latest moves by the US and British governments are aimed at shoring up their faltering economies, which have been hit badly by the Wall Street- born financial crisis that started last year.
Despite the massive bailouts, worries about a prolonged global economic downturn hitting energy demand continue to haunt the oil futures market, analysts said.
OPEC's second largest exporter, Iran, said the oil cartel should further slash output to boost prices, which are down by about 64 per cent from their record peak of above 147 dollars in July.
"OPEC decided to cut production by 1.5 million barrels (a day) in October, but it could not stop oil prices from falling," Iran's OPEC envoy Mohammad Ali Khatibi was quoted as saying Monday by the Resalat daily.
"So it appears that OPEC needs to further reduce production to prevent this trend," Khatibi said.
The Organisation of the Petroleum Exporting Countries (OPEC), which pumps about 40 per cent of the world's crude, is scheduled to hold an extraordinary meeting on Saturday in Egypt.
There is speculation member nations will agree to cut output again in a bid to boost oil prices.
New York's main futures contract, light sweet crude for January delivery, traded at 53.93 dollars, down 57 cents from Monday's close of 54.50 dollars after soaring 4.57 dollars.
Brent North Sea crude for January delivery dropped 50 cents to 53.43 dollars a barrel after closing Monday in London at 53.93 dollars, up 4.74 dollars.
"It was up significantly yesterday reacting to another bailout on Wall Street," said Victor Shum, a Singapore-based analyst with energy consultancy Purvin and Gertz.
Financial markets soared Monday after the US government pumped billions of dollars into ailing US bank Citigroup and Britain unveiled a mammoth financial stimulus package worth 20 billion pounds (30 billion dollars).
The latest moves by the US and British governments are aimed at shoring up their faltering economies, which have been hit badly by the Wall Street- born financial crisis that started last year.
Despite the massive bailouts, worries about a prolonged global economic downturn hitting energy demand continue to haunt the oil futures market, analysts said.
OPEC's second largest exporter, Iran, said the oil cartel should further slash output to boost prices, which are down by about 64 per cent from their record peak of above 147 dollars in July.
"OPEC decided to cut production by 1.5 million barrels (a day) in October, but it could not stop oil prices from falling," Iran's OPEC envoy Mohammad Ali Khatibi was quoted as saying Monday by the Resalat daily.
"So it appears that OPEC needs to further reduce production to prevent this trend," Khatibi said.
The Organisation of the Petroleum Exporting Countries (OPEC), which pumps about 40 per cent of the world's crude, is scheduled to hold an extraordinary meeting on Saturday in Egypt.
There is speculation member nations will agree to cut output again in a bid to boost oil prices.