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Oil down to near US$100 in light holiday trading
Source: Agencies |
May 31, 2011, Tuesday
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OIL prices fell to near US$100 a barrel yesterday in light holiday trading as investors awaited a decision on OPEC output quotas and mulled the impact of Middle East political tensions.
By early afternoon in Europe, benchmark oil for July delivery was down 44 cents to US$100.15 a barrel in electronic trading on the New York Mercantile Exchange. The benchmark contract added 36 cents to settle at US$100.59 on Friday.
In London, Brent crude for July delivery was down 36 cents to US$114.67 a barrel on the ICE Futures exchange.
Markets in the U.S. are closed yesterday for the Memorial Day holiday while it is a bank holiday in England.
Security forces killed anti-government protesters in Syria and Yemen yesterday, the latest instances of political violence that has swept the oil-rich region this year.
The Libyan rebels' finance minister, Ali Tarhouni, said Sunday that the oil fields located in the eastern half of the country under opposition control will resume production once it's safe to send workers to the fields. He said he did not expect security to be established soon.
Before the uprising against Moammar Gadhafi's regime, Libya produced about 1.6 million barrels per day, but output has ground to a halt during the revolt that began Feb. 15.
Some analysts expect the eventual return of Libyan crude production will help push oil prices lower. Capital Economics said it sees Brent trading below US$90 by the end of 2011 as political upheaval in the Middle East and North Africa, which it estimates has added about US$20 to the price of crude, eases.
"It seems likely that the stalemate in Libya will be resolved, one way or another, in the coming months," Capital Economics said in a report. "In the meantime, there is no sign of significant disruption to supply from other oil producers, notably Saudi Arabia."
Traders also are awaiting next week's meeting in Vienna of the Organization of the Petroleum Exporting Countries, wondering whether the group will heed calls for boosting its crude output.
"While the view was unanimous in the past that OPEC would leave production quotas unchanged, some analysts now expect an increase," said analysts at Commerzbank in Frankfurt. "OPEC would thereby signal a compromise toward the International Energy Agency, which had called more loudly than in the past for an increase of quotas."
Oil has dropped from a 30-month high near US$115 a barrel on May 2.
In other Nymex trading in June contracts, heating oil fell 1.66 cents to US$2.9739 a gallon and gasoline dropped 1.7 cents to US$3.075 a gallon. Natural gas futures rose 4.5 cents to US$4.563 per 1,000 cubic feet.
By early afternoon in Europe, benchmark oil for July delivery was down 44 cents to US$100.15 a barrel in electronic trading on the New York Mercantile Exchange. The benchmark contract added 36 cents to settle at US$100.59 on Friday.
In London, Brent crude for July delivery was down 36 cents to US$114.67 a barrel on the ICE Futures exchange.
Markets in the U.S. are closed yesterday for the Memorial Day holiday while it is a bank holiday in England.
Security forces killed anti-government protesters in Syria and Yemen yesterday, the latest instances of political violence that has swept the oil-rich region this year.
The Libyan rebels' finance minister, Ali Tarhouni, said Sunday that the oil fields located in the eastern half of the country under opposition control will resume production once it's safe to send workers to the fields. He said he did not expect security to be established soon.
Before the uprising against Moammar Gadhafi's regime, Libya produced about 1.6 million barrels per day, but output has ground to a halt during the revolt that began Feb. 15.
Some analysts expect the eventual return of Libyan crude production will help push oil prices lower. Capital Economics said it sees Brent trading below US$90 by the end of 2011 as political upheaval in the Middle East and North Africa, which it estimates has added about US$20 to the price of crude, eases.
"It seems likely that the stalemate in Libya will be resolved, one way or another, in the coming months," Capital Economics said in a report. "In the meantime, there is no sign of significant disruption to supply from other oil producers, notably Saudi Arabia."
Traders also are awaiting next week's meeting in Vienna of the Organization of the Petroleum Exporting Countries, wondering whether the group will heed calls for boosting its crude output.
"While the view was unanimous in the past that OPEC would leave production quotas unchanged, some analysts now expect an increase," said analysts at Commerzbank in Frankfurt. "OPEC would thereby signal a compromise toward the International Energy Agency, which had called more loudly than in the past for an increase of quotas."
Oil has dropped from a 30-month high near US$115 a barrel on May 2.
In other Nymex trading in June contracts, heating oil fell 1.66 cents to US$2.9739 a gallon and gasoline dropped 1.7 cents to US$3.075 a gallon. Natural gas futures rose 4.5 cents to US$4.563 per 1,000 cubic feet.
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