|
|
| |
| |
| | | | |
| | Oil prices rise, remain under 60 dollars | |
|
| | |  | |
| | | World oil prices rose on Wednesday, but remained below 60 dollars a barrel as traders awaited publication of the latest crude inventories report in the United States.
New York's main futures contract, light sweet crude for delivery in June, rose 58 cents to 59.43 dollars a barrel on Wednesday. The contract on Tuesday struck 60.08 dollars -- a six-month high.
On Wednesday in London trade, Brent North Sea crude for June delivery gained 41 cents to 58.35 dollars a barrel.
Later on Wednesday, the US government's Energy Information Administration (EIA) will publish its report on American crude oil inventories for the week ending May 8.
The update is a key event for the oil market because the United States is the world's biggest energy-consuming nation.
Oil had topped 60 dollars on Tuesday, boosted by rising equity markets and a plunge in the greenback that made dollar-priced crude cheaper for buyers armed with stronger currencies.
"Crude prices surged to over 60 dollars... on optimism an economic recovery might pave the way for a rebound in oil consumption and as the dollar depreciated," said Sucden analyst Nimit Khamar.
Crude futures have plunged dramatically since striking record highs above 147 dollars a barrel on July 11, 2008, as a sharp global economic downturn sapped demand.
But they have rebounded somewhat after tumbling close to 32 dollars in December, with the pace accelerating in recent weeks.
"Considerable risks remain" on the oil market, the Organization of Petroleum Exporting Countries (OPEC) warned Wednesday as it again reduced its forecast for world crude demand.
"Considerable risks remain as oil market fundamentals are far from balanced due to the persistent contraction in demand and growing supply overhang," OPEC said in a monthly report.
"Whether this sentiment will lead to a sustainable recovery, despite the prevailing weakness in market fundamentals, remains to be seen."
OPEC also cut its forecast for global oil demand this year.
"Continuous downward revisions to world economy growth have been exhausting world oil demand. The new downward revision in world GDP (gross domestic product) implied a further downward revision in world oil demand growth of 0.2 million barrels per day (bpd) in 2009, which is mostly related to the Americas," it said.
OPEC estimated that demand would contract by 1.57 million bpd or 1.83 percent in 2009.
In its previous monthly bulletin released in April, OPEC had been pencilling in a contraction of 1.37 million bpd for 2009.
The cartel suggested that "a slow recovery may kick in during the last quarter of the year."
OPEC will meet in Vienna on May 28 to decide whether to cut production in order to prop up prices.
Since September, the cartel has reduced its oil production target by 4.2 million barrels a day to 24.84 million bpd. | |
| | Middle East Online | |
| | | |
| | | |
| | | | | |  | | | | | | | | | |
| |
