  |
|
Oil prices fall on mild US weather, before OPEC meet
AFP
LONDON
Petroleumworld.com 12 11 06World crude prices dropped under 62 dollars on Monday owing to warmer-than-normal temperatures in the United States, but an expected cut in output by OPEC later this week limited losses, traders said.
New York's main contract, light sweet crude for delivery in January, fell by 45 cents to 61.58 dollars per barrel in electronic deals before the official opening of the US market.
In London, Brent North Sea crude for January delivery dropped 30 cents to 61.90 dollars in electronic trading.
"Oil prices ease on forecasts for warmer weather in the US," Barclays Capital analyst Kevin Norrish said.
Warmer than usual temperatures are expected in eastern United States over, the next six to ten days, according to the country's national weather service.
Milder weather was likely to reduce demand for heating fuel, allowing inventories to rise, traders said.
"Meanwhile speculation over OPECs next move remains the dominant theme in the market at present," Norrish said.
"Overall consensus seems to be emerging within OPEC to make further production cuts when the cartel meets on Thursday."
Ministers from the 11-member Organisation of Petroleum Exporting Countries (OPEC) are meeting in Abuja, Nigeria.
The cartel, which regulates its oil supply to maximise export revenues and control prices, is eager to keep crude around 60 dollars per barrel, and a further cut would support the market heading into the northern hemisphere winter.
"There is a fair bit of anticipation in the market that OPEC is going to cut output," said Tobin Gorey, a commodities analyst with the Commonwealth Bank of Australia.
"That is the main focus for this week... definitely everybody is watching that," he said.
OPEC lowered its output quota at its last meeting in October to stem a slide in prices, which had fallen from a high of 78 dollars per barrel in July to about 58 dollars at the time of the cartel's gathering in Qatar.
The oil minister of Saudi Arabia, Ali al-Nuaimi, who is considered the most influential member owing to the country's vast resources, has meanwhile hinted that OPEC will cut again.
Indonesian Energy Minister Purnomo Yusgiantoro said Friday that OPEC was likely to cut by 1.0-1.5 million barrels per day.
AFP 11 1248 GMT 12 06
Copyright© 2001 AFP. All Rights Reserved.
Your
feedback is important to us!
We invite all our readers to share with us
their views and comments about this article.
Write to editor@petroleumworld.com
Any
question or suggestions, please write to:
editor@petroleumworld.com
Best
Viewed with IE
5.01+
Windows
NT 4.0, '95, '98 and ME +/ 800x600 pixels