Oil
prices gain on eve of OPEC meet
AFP
NEW YORK
Petroleumworld.com 01 31 06
World
oil prices inched up Monday after Saudi Arabia said that all OPEC
members have agreed to keep current production levels unchanged,
on the eve of a meeting of the cartel in Vienna.
New York's main contract, light sweet crude for delivery in March,
increased 59 cents to close at 68.35 dollars a barrel.
In London, the price of Brent North Sea crude for March delivery
added 35 cents to end at 66.59 dollars a barrel.
Saudi Oil Minister Ali al-Naimi, when asked if all 11 OPEC members
were in accord on maintaining current output, told reporters:
"Yes, yes, absolutely yes."
Iran has been pushing OPEC to agree to cut its production ceiling
of 28 million barrels per day by one million.
The Organisation of Petroleum Exporting Countries currently pumps
more than 29 million barrels per day when Iraq's output, which
is not included in the official quota system, is counted.
Nigeria, the United Arab Emirates, Kuwait, Algeria, Indonesia
and Iraq all looked set to keep the status quo when OPEC convenes
in the Austrian capital Tuesday.
For much of Monday oil prices had been in negative territory.
"News that four foreign oil workers held hostage by Nigerian
militants have been released (was) helping prices to ease back
a bit," noted Barclays Capital analyst Kevin Norrish.
Nigerian insurgents released four kidnapped foreign contractors
on Monday but immediately vowed to press home a series of violent
attacks against the oil and gas industries in Africa's biggest
oil producer.
Traders were also focused on a week of crunch diplomatic negotiations
in Europe over Iran's nuclear ambitions.
Iran's response to the efforts to reach a compromise over its
nuclear programme is not good enough, US Secretary of State Condoleezza
Rice said Monday ahead of a meeting of key powers in London.
Threatened with referral to the UN Security Council, Iran is calling
for more time for negotiation, but Rice said Tehran had shown
its true face since already being given extra time in September.
Washington accuses Tehran of using its nuclear energy programme
as a cover for developing atomic weapons. The Islamic republic
denies the claim.
"Going into the weekend, you had the fear premium of something
breaking with the Iranian or Nigerian situations," Alaron
Trading analyst Phil Flynn said.
"But there was little news for the market to react to apart
from OPEC, which is saying all the right things," he said.
"However, oil prices are only one headline away from breaking
out in either direction."
AFP
01/30/06
Copyright
© 2006 AFP. All rights reserved
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