Oil
prices hover over 60 dollars a barrel
AFP
NEW
YORK
Petroleumworld.com
03 10 06
World oil prices held close to 60 dollars a barrel on Thursday,
a day after plunging on news of ample US supplies and an OPEC
decision to keep pumping crude at a near 25-year high.
New York's main contract, light sweet crude for delivery in April,
went up 45 cents to close at 60.47 dollars a barrel.
In London, the price of Brent North Sea crude for April delivery
gained 1.03 dollars to 61.06 dollars a barrel.
"The market is at a crucial juncture," Fimat analyst
Mike Fitzpatrick said.
"The fundamental picture favors lower prices, for the moment,
with crude at its highest level in many years and the (US) economy
a bit sluggish," he said.
"Still, there remain numerous hot spots around the world
that could rear up at any moment and without warning."
On Wednesday, New York crude had hit an intra-day low point of
59.25 dollars, while London Brent touched 59.26 dollars -- both
markets' lowest levels since February 17.
The US Department of Energy had reported that US crude reserves
rose by 6.8 million barrels to 335.1 million in the week to March
3, far exceeding market forecasts.
Prices were also depressed Wednesday by a decision by the Organization
of the Petroleum Exporting Countries to maintain oil output at
a near 25-year high of 28 million barrels per day (bpd).
OPEC said in a statement that although the market was well supplied,
crude oil prices remained volatile on geo-political factors and
fears over disruptions to global supplies.
Dealers said tensions over Iran and Nigeria provided good support
for prices.
"Geo-political factors in (the two countries) could bring
prices back up quickly.
Any downside in prices is limited by these geo-political fears,"
said Victor Shum, an analyst with Purvin and Gertz.
Iranian oil minister Kazem Vaziri-Hamaneh gave assurances Wednesday
his country would continue to export crude even if hit by sanctions
because of Western fears over its nuclear programme.
But another senior Iranian official warned that the policy could
be "reviewed", spooking some people on the oil market.
Elsewhere, Nigerian separatist guerrillas, who are holding three
Western oil workers hostage, shot dead five government soldiers
in a firefight in the Niger Delta, a military spokesman said Thursday.
Nigeria is Africa's biggest oil exporter, producing 2.6 million
bpd, but has been forced to cut output by around 20 percent since
the start of the latest round of violence.
Despite the slight recovery in prices on Thursday, traders said
there was no longer any certainty that they would not fall below
60 dollars.
"The 60-dollar level was a good support level but not any
more with production levels high and the (US) inventories, which
keep building," said Tony Nunan, a Tokyo-based energy risk
manager with Mitsubishi Corp.
AFP
03 09 06
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© 2006 AFP. All rights reserved.
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