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Oil prices rise after OPEC seeks output cut
New York, May 10: Oil prices surged after OPEC president Abdullah bin Hamad al-Attiyah reportedly called for production cuts at a meeting next month.
New York, May 10: Oil prices surged after OPEC president Abdullah bin Hamad al-Attiyah reportedly called for production cuts at a meeting next month.
New York's benchmark light sweet crude for June delivery gained 74 cents to 27.72 dollars a barrel yesterday.
In London, the price of benchmark brent North Sea crude oil for June delivery climbed 47 cents to 25.12 dollars a barrel. The market lurched upwards after al-Attiyah, who is also Qatar's oil minister, was quoted as saying the Organisation of Petroleum Exporting Countries (OPEC) must act to curb a glut.
"There is too much oil on the market and that has a bad influence on prices which have fallen dramatically," al-Attiyah told France's Le Monde newspaper in an interview published yesterday. "The next meeting of OPEC members is planned for June 11 in Doha. OPEC is going to need to make new cuts in its production. It's on that date that we will decide by how much," said al-Attiyah, who is also the Qatari oil minister.
Prices had slumped after OPEC decided in April to cut production while also raising output ceilings to bring them closer into line with reality, providing a muddled message to the market.
Now the cartel seemed keen to try again, said Commerzbank analyst Jon Rigby in London. "There is clearly a lot of pressure on to try to reset the level of production at an appropriate level ... And try to drag in the non-OPEC countries as well," he said.
Bureau Report
In London, the price of benchmark brent North Sea crude oil for June delivery climbed 47 cents to 25.12 dollars a barrel. The market lurched upwards after al-Attiyah, who is also Qatar's oil minister, was quoted as saying the Organisation of Petroleum Exporting Countries (OPEC) must act to curb a glut.
"There is too much oil on the market and that has a bad influence on prices which have fallen dramatically," al-Attiyah told France's Le Monde newspaper in an interview published yesterday. "The next meeting of OPEC members is planned for June 11 in Doha. OPEC is going to need to make new cuts in its production. It's on that date that we will decide by how much," said al-Attiyah, who is also the Qatari oil minister.
Prices had slumped after OPEC decided in April to cut production while also raising output ceilings to bring them closer into line with reality, providing a muddled message to the market.
Now the cartel seemed keen to try again, said Commerzbank analyst Jon Rigby in London. "There is clearly a lot of pressure on to try to reset the level of production at an appropriate level ... And try to drag in the non-OPEC countries as well," he said.
Bureau Report