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Oil prices lower in Asian trade
AFP
SINGAPORE
Petroleumworld.com 09 29 06
Oil prices were lower in Asian trade Friday after climbing above 64 dollars in New York as the markets reacted to fresh concerns over Iran's nuclear program and a possible supply cut by OPEC, dealers said.
At 11:08 am (0308 GMT) New York's main contract, light sweet crude for November delivery, was down 41 cents at 62.35 dollars a barrel from 62.76 dollars in late US trade Thursday. Earlier, it had moved above 64 dollars for the first time since September 19.
Brent North Sea crude fell 54 cents to 62.05 dollars.
Tetsu Emori, the chief commodities strategist for Mitsui Bussan Futures in Tokyo, said Friday's declines were a technical reaction to the gains in New York and that several supportive factors were still in the market.
"The news of the inconclusive (EU) talks over Iran's nuclear program and other geopolitical issues ... still are potentially bullish factors and the market will react accordingly," Emori said.
Iran and the European Union failed to reach agreement in talks Thursday on Tehran's disputed nuclear program, prompting the United States to warn that the possibility of sanctions against Iran was getting closer.
Iran's top nuclear negotiator Ali Larijani and EU foreign policy chief Javier Solana said that although an accord was elusive, the negotiations had been positive and constructive.
In Washington, US State Department spokesman Sean McCormack reaffirmed that a new deadline for Iranian compliance was looming and would not be changed.
Analysts warn that Iran, the world's fourth largest crude producer, could retaliate against sanctions by disrupting its oil exports, which would lead to a sharp jump in prices.
Emori said the "unclear, mixed messages" from the Organisation of Petroleum Exporting Countries (OPEC) on output decision were also "unnerving the market."
OPEC members have held talks about a recent fall in oil prices but no formal decision has been taken to cut production, the Vienna-based oil exporters group said on Thursday.
For the moment, OPEC does not envisage calling an emergency meeting to sanction a cut in the organisation's output quota, which has remained at 28 million barrels per day since June 2005, an OPEC spokesman said.
"OPEC needs to act quickly if it is to persuade the market it is serious about defending a price floor in the low 60 dollars as a number of its most important members have recently signalled is the case," Barclays Capital analyst Kevin Norrish said.
AFP 29 0342 GMT 09 06
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