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Oil prices fall as OPEC output meeting looms
AFP
NEW YORK
Petroleumworld.com 03 13 07World crude oil prices fell Monday as traders' attention turned to this week's looming OPEC cartel output meeting amid forecasts of warmer weather across the United States.
New York's main oil futures contract, light sweet crude for delivery in April, closed down a hefty 1.14 dollars at 58.91 dollars per barrel.
Across the Atlantic in London, the price of Brent North Sea crude for April delivery settled down 39 cents at 60.74 dollars per barrel.
Crude futures had declined on Friday as traders booked profits ahead of this Thursday's production meeting of the Organization of the Petroleum Exporting Countries (OPEC)."The market slumped over night, pressured by lingering concerns of global economic growth, warmer temperatures lowering fuel demand and OPEC likely output steady at this week's meeting," said Mike Fitzpatrick, a market analyst with Fimat, part of Societe Generale.
Energy Information Centre analyst Veronica Smart said: "We saw quite a downside (to prices) on Friday and I think it seems to be a continuation of that trend."
Monday's price falls also came amid forecasts of above average temperatures in parts of the United States in coming days as spring gains a foothold.
Forecaster AccuWeather said that southwest winds would likely warm the US northeast, which is the world's largest heating oil market.
"It is warm and it is going to be very warm indeed across much of North America this week," wrote Dennis Gartman, editor of The Gartman Letter, in a daily trading note.
He added that for now the market was focused on OPEC's meeting in Vienna.
The powerful cartel, satisfied with the current price of crude oil, was widely expected on Thursday to maintain its official production quota at 25.8 million barrels per day.
Smart added: "The majority of OPEC members said that they do not need to take any action in the market particularly because prices are near 60 dollars.
With OPEC's output announcement a forgone conclusion, according to experts, the surprise element lies with Angola, and whether the cartel's newest member is handed a quota at its first official meeting in Vienna.
Last October, the cartel agreed to cut its output by 1.2 million bpd, starting in November, in an attempt to lift prices.
OPEC followed up by agreeing another cut of 500,000 bpd which was due to have begun on February 1 this year.
The cartel moved to slash production after crude prices had tumbled from record highs above 78 dollars per barrel in mid-2006 to about 60 dollars by the time of last October's output decision.
AFP 12 1946 GMT 03 07
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