Oil down as report rattles confidence<\/p>\n
SINGAPORE (Reuters): Crude prices in Asia were weaker on
\nThursday, falling from 22-month highs after a report raised the
\nprospect of OPEC slightly loosening the production taps.<\/p>\n
The October New York Mercantile Exchange (NYMEX) crude
\nfutures, trading on the after-hours ACCESS system, were last
\ntraded at US$21.75 per barrel at 0710 GMT, 24 cents lower than
\nNew York.<\/p>\n
October peaked at $22.29 -- a 22-month high -- in New York on
\nWednesday but then settled at $21.99 by the close, 12 cents down
\non the day.<\/p>\n
On the Singapore International Monetary Exchange (SIMEX),
\nOctober Brent crude was offered at $20.96, but no bids emerged
\nand no trades had been done.<\/p>\n
In the London market, the contract closed 22 cents down at
\n$21.11 on the International Petroleum Exchange (IPE).<\/p>\n
Traders said oil prices were correcting down, although some
\nbearish sentiment was seeping into the market after a report of
\nhigher OPEC output and a build in crude stocks in the United
\nStates.<\/p>\n
A report by consultant Petrologistics said that OPEC output
\nrose to 26.705 million barrels per day (bpd) in August, from
\n26.505 million bpd in July and 26.3 million bpd in June.<\/p>\n
This was seen as a sign that higher prices had started to
\ntempt some OPEC members to loosen the taps.<\/p>\n
\"Although some data for July remains doubtful, the overall
\ntrend is becoming clear; supply rises as prices firm,\"
\nPetrologistics said in a report.<\/p>\n
Data from the American Petroleum Institute (API) and the U.S.
\nDepartment of Energy, which earlier this week showed crude stocks
\nup week-on-week, also added a bearish element to the market.<\/p>\n
Analysts said U.S. stocks have fallen significantly from the
\nhigh levels of early this year, and are lower compared to last
\nyear.<\/p>\n
But they were still higher than the five-year average, they
\nsaid.<\/p>\n
Nevertheless, continued cuts by OPEC are expected to drain the
\nglobal surplus within months, resulting in tight supplies as the
\nnorthern hemisphere moves into the high-demand winter season.<\/p>\n
Crude prices have doubled in the last six months following the
\nOPEC move to cut production in March.<\/p>\n
But several key OPEC members have said the cuts should remain
\nin place until April next year as originally planned, despite the
\nprice rally, since stocks were high.<\/p>\n
A meeting in Caracas on Saturday between oil ministers of
\nSaudi Arabia, Venezuela and non-Mexico, the architects of the
\nMarch global supply cuts, assured the market that the supply
\ncurbs would not be relaxed when OPEC next meets on September 22.<\/p>",
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