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Oil prices slip, still at giddy heights
New York, May 21: The super-heated world oil market has chilled a little in anticipation of an imminent OPEC production boost, but prices remained menacingly close to record highs.
New York, May 21: The super-heated world oil
market has chilled a little in anticipation of an imminent
OPEC production boost, but prices remained menacingly close to
record highs.
New York's benchmark light sweet crude for June
delivery fell 75 cents to 40.75 dollars a barrel, 80 cents shy
of the record high settlement set earlier in the week.
Brent North Sea crude oil for July delivery dipped 63
cents to 37.27 dollars per barrel.
"The uptrend still stands," said REFCO market analyst
Marshall Steeves, with deep concerns over middle east
security and tight gasoline supplies in the United States
ahead of the peak summer demand period.
Organisation of petroleum exporting country’s ministers plan to meet informally tomorrow in Amsterdam to ponder raising production quotas to help to lower prices.
Oil kingpin Saudi Arabia has proposed lifting OPEC production by 1.5 million barrels per day.
Organisation of petroleum exporting country’s ministers plan to meet informally tomorrow in Amsterdam to ponder raising production quotas to help to lower prices.
Oil kingpin Saudi Arabia has proposed lifting OPEC production by 1.5 million barrels per day.
"The Saudis do seem to be offering additional volumes at the moment to try and calm the market," said Prudential Bache broker Tony Machacek.
But prices were high because of a limited US capacity
to refine oil for gasoline, strong crude oil demand in China
and the "fear factor" linked to terrorism and unrest in the
Middle East, he said.
OPEC president Purnomo Yusgiantoro said the OPEC 10
- excluding Iraq - were producing 2.0 million barrels a day
above the official quota of 23.5 million barrels a day.
Bureau Report