Oil prices ease from high points

LONDON – Oil prices eased yesterday due to technical reasons, having surged in London and New York ahead of the weekend amid fears over possible terrorist attacks and tight supplies, traders said.

The price of Brent North Sea crude oil for delivery in September, the new reference contract, fell 32 cents to US$37,68 (N$222) per barrel in early afternoon deals in London. New York’s light sweet crude benchmark August futures lost 23 cents to US$41,02 dollars (N$242) per barrel in pre-opening electronic deals.High demand for oil from China amid tight supplies and uncertainty from terrorism fears in Iraq and the wider Middle East have helped to push prices to record levels despite it being the traditionally slack summer season in the northern hemisphere.In an effort to curb world prices, the Organisation of Petroleum Exporting Countries agreed in June to raise its output ceiling by 2,5 million barrels per day (bpd) in two stages.OPEC first increased production by two million bpd on July 1.A further 500,000 bpd rise is scheduled for August 1, bringing the production of the 10 Opec states in the quota system – Iraq is not included – to a total of 26 million barrels per day.But analysts at the Sucden brokerage firm Monday voiced renewed skepticism over Opec’s moves to increase output.”It is unclear if this will represent any real production increases.Most members of the cartel are already pumping at almost full capacity, well above the new limit of 26 million bpd.”Opec had planned to meet in Vienna this Wednesday but cancelled the meeting last week.Analysts said the cartel had no reason to meet as it did not plan to make changes to its production policy agreed in June as it was happy with current prices.-Nampa-AFPNew York’s light sweet crude benchmark August futures lost 23 cents to US$41,02 dollars (N$242) per barrel in pre-opening electronic deals.High demand for oil from China amid tight supplies and uncertainty from terrorism fears in Iraq and the wider Middle East have helped to push prices to record levels despite it being the traditionally slack summer season in the northern hemisphere.In an effort to curb world prices, the Organisation of Petroleum Exporting Countries agreed in June to raise its output ceiling by 2,5 million barrels per day (bpd) in two stages.OPEC first increased production by two million bpd on July 1.A further 500,000 bpd rise is scheduled for August 1, bringing the production of the 10 Opec states in the quota system – Iraq is not included – to a total of 26 million barrels per day.But analysts at the Sucden brokerage firm Monday voiced renewed skepticism over Opec’s moves to increase output.”It is unclear if this will represent any real production increases.Most members of the cartel are already pumping at almost full capacity, well above the new limit of 26 million bpd.”Opec had planned to meet in Vienna this Wednesday but cancelled the meeting last week.Analysts said the cartel had no reason to meet as it did not plan to make changes to its production policy agreed in June as it was happy with current prices.-Nampa-AFP