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Oil prices rise as Opec overshadows Iraqi regime collapse
New York, Apr 10: Oil prices rose despite the collapse of Iraqi leader Saddam Hussein`s regime as dealers worried about a possible Opec production cut.
New York, Apr 10: Oil prices rose despite the collapse of Iraqi leader Saddam Hussein's regime as dealers worried about a possible Opec production cut.
New York's benchmark light sweet crude contract for MAY delivery climbed 85 cents to 28.85 dollars a barrel yesterday.
In London, reference Brent North Sea crude for May delivery advanced 65 cents to 25.25 dollars a barrel.
The oil market had already been banking on a swift end to the Iraqi regime so there was little room for a boost when it actually happened, analysts said.
"The reaction to what is going on in Iraq happened before between mid-March and last week," as US and British troops advanced across the country, said USA market analyst Mike Fitzpatrick. Instead, the market sweated over an impending meeting of Opec and new figures showing crude inventories drained lower in the past week.
Opec is to hold an extraordinary meeting in Vienna on April 24 to consider a possible production cut, according to a source at the cartel.
The department of energy announced that crude stocks fell 3.6 million barrels, or 1.3 per cent, in the week ending April 4 when compared to the previous week. The market weakness was evident despite extraordinary scenes broadcast from Baghdad, showing Iraqis joining US Marines to topple a giant statue of Saddam in a main square.
Bureau Report
The oil market had already been banking on a swift end to the Iraqi regime so there was little room for a boost when it actually happened, analysts said.
"The reaction to what is going on in Iraq happened before between mid-March and last week," as US and British troops advanced across the country, said USA market analyst Mike Fitzpatrick. Instead, the market sweated over an impending meeting of Opec and new figures showing crude inventories drained lower in the past week.
Opec is to hold an extraordinary meeting in Vienna on April 24 to consider a possible production cut, according to a source at the cartel.
The department of energy announced that crude stocks fell 3.6 million barrels, or 1.3 per cent, in the week ending April 4 when compared to the previous week. The market weakness was evident despite extraordinary scenes broadcast from Baghdad, showing Iraqis joining US Marines to topple a giant statue of Saddam in a main square.
Bureau Report