Oil
prices slip further below 60 dollars in New York
AFP
LONDON
Petroleumworld.com
03 14 06
World oil prices extended losses on Monday as robust stockpiles
of US energy helped to offset tensions in major crude producers
Iran and Nigeria, analysts said.
New York's main contract, light sweet crude for delivery in April,
fell 17 cents to 59.79 dollars per barrel in electronic deals
before the market's official opening.
New York prices dropped six percent last week after official data
revealed high inventories of US crude and the OPEC cartel maintained
its oil production levels at a 25-year high.
On Monday in London, the price of Brent North Sea crude for April
delivery lost 11 cents to 60.72 dollars per barrel in electronic
trade after having earlier risen.
"This market is like Dr Jeykll and Mr Hyde," said Tony
Nunan, an energy risk manager for Mitsubishi Corporation.
"It has a very high volatility and, short-term, there are
plenty of inventories.
However, the big concerns are Iran and Nigeria," Nunan added.
The oil market fears that Iran, the world's fourth biggest producer
of crude, could halt its energy exports if threatened with economic
sanctions over its disputed nuclear programme.
But on Monday Iran's economy minister said he believed the international
community was "unlikely" to impose economic sanctions.
In London analysts at the Sucden brokerage firm said that crude
futures were "likely to remain volatile, reflecting anxiety
about potential supply disruptions due to Iran's dispute with
Western world powers over its nuclear programme".
Oil prices were being supported also by violence in Nigeria that
has cut 20 percent of oil output in Africa's biggest producer
of crude.
"The only thing that is keeping the price of oil high is
the threat of a loss of production from these two sources as the
world does not currently have enough spare capacity to cover any
major supply problem from each supplier," Sucden analysts
added.
Iran's hardline President Mahmoud Ahmadinejad meanwhile insisted
that his country would not back down "one iota" on its
nuclear programme.
"We know well that a country's backing down one iota on its
undeniable rights is the same as losing everything," state
television quoted Ahmadinejad as saying.
"We will not bend to a few countries' threats as their demands
for giving up our nation's rights are unfair and cruel,"
he added.
Iran noted also that it was to start work in the next six months
on a second nuclear power station.
Iran's nuclear programme, which Tehran says is for peaceful purposes
but is alleged by the United States to be a cover for weapons
production, is due to be discussed on the UN Security Council
next week.
AFP
03 13 06
Copyright
© 2006 AFP. All rights reserved.
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