Oil prices fell today when an OPEC official said the cartel may boost output, calming concerns about tight supplies.
"I would not exclude the possibility of increasing production if the market wants it," said Chakib Khelil, Algeria's oil minister, who takes over as president of the Organization of the Petroleum Exporting Countries on Jan. 1.
Khelil, who spoke to reporters at a Mediterranean energy conference in Cyprus, also said current oil supplies are sufficient.
Data released by oil tanker-tracker Petrologistics shows OPEC oil exports have already risen by about 400,000 barrels a day, analysts said.
As the oil supply picture is improving, concerns about weakening demand are rising. Analysts said Friday's government report that consumer inflation jumped in November by the largest amount in more than two years continues to weigh on markets.
"Worries about economic growth have re-emerged," said Addison Armstrong, director of exchange traded markets at TFS Energy Futures LLC in Stamford, Conn.
Light sweet crude for January delivery fell 64 cents to settle at $90.63 a barrel on the New York Mercantile Exchange.
At the pump, meanwhile, gas prices fell 0.2 cent overnight to a national average of $2.996 a gallon, according to AAA and the Oil Price Information Service. Gas prices have mostly fallen since peaking above $3.11 a gallon as oil was approaching $100 a barrel in mid-November.
While oil prices rose slightly last week, they remain nearly $10 a barrel below November's record highs. Many analysts believe the market's sentiment has changed from bullish to negative amid a number of reports that demand and economic growth are weakening.
READ MORE...
Oil prices fell today despite two weekend developments that, several weeks ago, would have sent prices sharply higher: Word that Turkish forces attacked Kurdish rebel positions inside Iraq and the call by a Nigerian militant group that rebels in the oil-rich African nation should unite and attack the continent's largest oil industry.
"Those are bullish stories that are failing to stimulate buying," which should be taken as a sign that the oil market is weak, said Tim Evans, an analyst at Citigroup Inc. in New York.
The dollar contributed to that weakness by stabilizing against other currencies in recent days. Oil prices have risen this fall partly due to speculative buying by investors who see crude futures as a hedge against the dollar, which has weakened this year. Also, oil futures bought and sold in dollars are more attractive to foreign investors when the dollar is falling.
Other energy futures mostly fell today. Gasoline futures for January delivery fell 0.63 cent to settle at $2.3354 a gallon on the Nymex while January heating oil fell a cent to settle at $2.5979 a gallon. January natural gas rose a cent to settle at $7.035 per 1,000 cubic feet.
In London, Brent crude fell 40 cents to settle at $91.29 a barrel on the ICE Futures exchange.
Via: Associated Press
"I would not exclude the possibility of increasing production if the market wants it," said Chakib Khelil, Algeria's oil minister, who takes over as president of the Organization of the Petroleum Exporting Countries on Jan. 1.
Khelil, who spoke to reporters at a Mediterranean energy conference in Cyprus, also said current oil supplies are sufficient.
Data released by oil tanker-tracker Petrologistics shows OPEC oil exports have already risen by about 400,000 barrels a day, analysts said.
As the oil supply picture is improving, concerns about weakening demand are rising. Analysts said Friday's government report that consumer inflation jumped in November by the largest amount in more than two years continues to weigh on markets.
"Worries about economic growth have re-emerged," said Addison Armstrong, director of exchange traded markets at TFS Energy Futures LLC in Stamford, Conn.
Light sweet crude for January delivery fell 64 cents to settle at $90.63 a barrel on the New York Mercantile Exchange.
At the pump, meanwhile, gas prices fell 0.2 cent overnight to a national average of $2.996 a gallon, according to AAA and the Oil Price Information Service. Gas prices have mostly fallen since peaking above $3.11 a gallon as oil was approaching $100 a barrel in mid-November.
While oil prices rose slightly last week, they remain nearly $10 a barrel below November's record highs. Many analysts believe the market's sentiment has changed from bullish to negative amid a number of reports that demand and economic growth are weakening.
READ MORE...
Oil prices fell today despite two weekend developments that, several weeks ago, would have sent prices sharply higher: Word that Turkish forces attacked Kurdish rebel positions inside Iraq and the call by a Nigerian militant group that rebels in the oil-rich African nation should unite and attack the continent's largest oil industry.
"Those are bullish stories that are failing to stimulate buying," which should be taken as a sign that the oil market is weak, said Tim Evans, an analyst at Citigroup Inc. in New York.
The dollar contributed to that weakness by stabilizing against other currencies in recent days. Oil prices have risen this fall partly due to speculative buying by investors who see crude futures as a hedge against the dollar, which has weakened this year. Also, oil futures bought and sold in dollars are more attractive to foreign investors when the dollar is falling.
Other energy futures mostly fell today. Gasoline futures for January delivery fell 0.63 cent to settle at $2.3354 a gallon on the Nymex while January heating oil fell a cent to settle at $2.5979 a gallon. January natural gas rose a cent to settle at $7.035 per 1,000 cubic feet.
In London, Brent crude fell 40 cents to settle at $91.29 a barrel on the ICE Futures exchange.
Via: Associated Press
No comments:
Post a Comment