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Crude oil prices dip
AFP
NEW YORK
Petroleumworld.com 15 11 06
World crude prices dipped Tuesday as profit-taking overcame upward pressure on prices from the prospect of another cut in OPEC production next month, dealers said.
New York's main contract, light sweet crude for delivery in December, slipped 30 cents to close at 58.28 dollars a barrel.
In London, Brent North Sea crude for December delivery was down 21 cents to settle at 58.84 dollars a barrel.
"On one hand we see reports that OPEC is talking about another production cut, but in the near term the (US) weather has been pretty mild," Alaron Trading analyst Phil Flynn said.
"The bulls and the bears are fighting each other right now and we're still locked in this trading range," he said.
"It's sort of a stalemate right now. It's kind of like 'The Twilight Zone' or 'Groundhog Day': just the same things over and over."
The Organisation of the Petroleum Exporting Countries (OPEC) agreed last month to cut production by 1.2 million barrels per day in a bid to prop up prices, which have declined from records above 78 dollars earlier this year.
Although the cartel's move was initially met by market scepticism, recent warnings from key OPEC members of further cuts have made some players nervous, analysts said.
Iran's envoy to OPEC, Hossein Kazempour Ardebili, said Monday that the cartel would cut its output quota further to bolster crude prices if its latest reduction has no effect on the market.
The 11 members of OPEC together produce more than one-third of world crude output. The organisation has said it might decide on a further cut at its next meeting in the Nigerian capital Abuja on December 14.
Sucden analyst Michael Davies said there were still doubts about OPEC's plans.
"Questions still remain about whether OPEC members will actually deliver their pledged reductions in output, and until market participants start to see some real evidence of this, then prices are unlikely to rise too far," he said.
Crude futures wilted Monday on forecasts from meteorologists of above-average temperatures this week in the US northeast, the world's largest consumer of heating oil.
They have since recovered slightly, but analysts said the market was stuck in a 58 to 61 dollar range.
"The bottom line is that we're still rangebound," said Calyon analyst Mike Wittner. But he added that he sees the next sustained price movement as upwards. "We'll be back to mid-60s by December."
Market participants were meanwhile looking ahead to Wednesday's weekly snapshot of energy stockpiles in the United States.
Analysts predict that US crude oil reserves will have risen by 1.23 million barrels in the week to November 10.
Stockpiles of distillates, which include heating fuel and diesel, are forecast to have fallen by 525,000 barrels.
Demand for heating fuel hits a peak during the northern hemisphere's winter months.
AFP 14 2039 GMT 11 06
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