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Oil prices hold above 53 dollars on prospects for OPEC cut
AFP
LONDON
Petroleumworld.com 01 15 07World oil prices firmed on Monday on expectations that the Organization of Petroleum Exporting Countries might cut production to prevent prices from falling further, dealers said.
Last week, prices fell to levels last seen in June 2005 because of unusually warm winter temperatures both in the United States and Europe, which have slowed demand for heating oil.
In London on Monday, the price of Brent North Sea crude for February delivery rose 40 cents to 53.35 dollars per barrel in electronic trading.
New York's main oil futures contract, light sweet crude for delivery in February, gained 35 cents to 53.34 dollars per barrel in electronic deals.
"OPEC might be further galvanised to take action, so this morning the market is reacting to the possibility of further (production) cuts by OPEC," said Victor Shum, an analyst with Purvin and Gertz energy consultancy.
Recent sharp price falls have sparked speculation that OPEC could soon hold an emergency production meeting.
Iran and Venezuela had called on Sunday for new OPEC oil production cuts to support plunging world crude prices, which have shed some 14 percent in value since the start of 2007.
OPEC ministers had decided last month at a meeting in the Nigerian capital to cut output by 500,000 barrels per day (bpd) from February.
This followed OPEC's reduction of 1.2 million bpd that became effective in November. But unseasonably warm winter weather in the northern hemisphere and slowing US growth have reduced demand and brought down prices.
AFP 150858 GMT 01 07
Copyright© 2001 AFP.All Rights Reserved.
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