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.

"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