London, June 07: Oil prices inched upwards as dealers viewed a meeting between the energy ministers of Saudi Arabia, Venezuela and Mexico yesterday as a sign crude producers might be preparing the way for fresh curbs on supplies. The price of benchmark Brent North Sea crude oil for July delivery rose 34 cents to 27.78 dollars per barrel.
New York's light sweet crude July contract was up 31 cents to 31.05 dollars in early trading. Saudi Oil Minister Ali al-Nuaimi and the energy ministers of Venezuela and Mexico, Rafael Ramirez and Ernesto Martens, respectively, were meeting in Madrid, days ahead of a gathering of members of industry cartel Opec.
The Organisation of Petroleum Exporting Countries meets in Qatar on Wednesday and has been tipped to agree production curbs in a bid to support prices. A strong market caused by low crude oil stocks in the United States ahead of its traditionally gasoline-intensive summer holiday season has reduced the immediate likelihood of production cuts.
Commerzbank analyst Jon Rigby added that the Madrid meeting was seen as Opec members Saudi Arabia and Venezuela "looking for consent to support prices if needed in future" from non-member Mexico.
"There is clear action going on at the moment to manage the oil price even if it is not exactly clear what is going on," he said. Bureau Report