Oil prices firmer in rangebound Asian trade Agence France-Presse
November 14, 2006
SINGAPORE--Crude oil prices were firmer in rangebound Asian trade Tuesday as the market steadied following reports of warmer winter weather in the United States, the world's top consumer, dealers said.
New York's main contract, light sweet crude for delivery in December, was up four cents to 58.62 dollars a barrel from 58.58 dollars in late US trades.
Brent North Sea Crude for December delivery was five cents higher at 59.10 dollars a barrel.
Tony Nunan, of Mitsubishi Corp's international petroleum business in Tokyo, said the market seemed to have stabilized following two days of weakness after the International Energy Agency (IEA) trimmed its forecasts for global demand.
"I think it's going to be stuck in a range there," Nunan said, putting the spread at 58 and 61 dollars a barrel.
Prices fell Monday on forecasts of unseasonably warm winter weather in the United States, the world's biggest consumer of energy, dealers said.
"The market appears happy to remain rangebound for the moment with the prospect of OPEC (production) cuts supporting prices but with many market participants waiting for actual evidence of a reduction in output, prices appear to be capped," Sucden analyst Michael Davies.
Iran's envoy to the Organization of the Petroleum Exporting Countries said Monday the cartel would cut output further to bolster prices if its latest move to slash output has no effect.
"OPEC oil ministers have reached an understanding that if the 1.2 million barrels per day cut does not have an impact on the market, they will make a further cut in the output ceiling," Hossein Kazempour Ardebili said.
The 11-member OPEC decided last month to reduce output by 1.2 million bpd to 26.3 million bpd effective from the start of November.
However, many remain skeptical about OPEC's ability to implement the reduction in full.
On Monday, Saudi Arabian oil giant Aramco informed its Asian customers of a fall in exports in December, following a similar reduction in November, according to analysts.
