Oil eases as funds take profits from bull run<\/p>\n
Reuters, London<\/p>\n
Oil prices eased on Monday as speculative hedge funds took
\nprofits from recent strong gains made on supply concerns for the
\nnorthern winter and violence in the Middle East.<\/p>\n
Benchmark Brent crude dropped 51 U.S. cents to US$29.05 a
\nbarrel in London and U.S. light crude for December delivery fell
\n67 U.S. cents to $31.70 a barrel.<\/p>\n
Heavy buying by investment funds has helped push prices up 12
\npercent this month and analysts said speculators would now look
\nto take profits. Since the Iraq war U.S. crude has held strong
\nabove $25 a barrel, but has repeatedly failed to break above the
\n$33 a barrel level.<\/p>\n
\"This market does now look vulnerable to fund liquidation and
\nthis is probably what we are seeing,\" analysts at Barclays
\nCapital bank said in a report.<\/p>\n
Oil prices have risen by $4 since the deal in September by the
\nOrganization of the Petroleum Exporting Countries to cut
\nproduction by 3.5 percent in November.<\/p>\n
OPEC meets next on December 4 and some analysts have said that
\nthe cartel will need to cut supply again to offset rising output
\nfrom Russia and Iraq.<\/p>\n
Venezuela said on Monday that despite the current price
\nstrength OPEC would not raise production.<\/p>\n
\"We maintain our position to cut production if it is
\nnecessary...or to keep it stable. But we are not thinking about
\nincreasing production,\" Venezuela Energy Minister Rafael Ramirez
\nsaid.<\/p>\n
Shipping brokers say heavy tanker loadings from the Middle
\nEast suggest OPEC has not implemented existing cutbacks in full,
\nnoting extra bookings by top world exporter Saudi Arabia.<\/p>\n
Suicide bombs in Saudi Arabia and Iraq have bolstered concern
\nover supply from the Middle East, which pumps a third of the
\nworld's oil.<\/p>\n
A unit of militant group Al-Qaeda claimed responsibility for
\nSaturday's blasts at two Turkish synagogues that killed at least
\n23 people. The unit also threatened the United States, Australia,
\nJapan, Italy and Britain, as well as their Arab allies, with more
\nbombings.<\/p>\n
\"The geopolitical backdrop is undoubtedly another key factor
\nin keeping prices firm,\" said Man Financial in a research note.
\n\"Every day we are seeing more turmoil on the Middle East and this
\npast weekend the grim news was worse than usual.\"<\/p>\n
A U.S. government report showing crude and heating oil stocks
\nfalling ahead of winter bolstered last week's gains as refined
\noil product stocks are below comfortable levels in the United
\nStates, the world's biggest oil consumer.<\/p>\n
Rapid fuel demand growth in China has also strengthened
\ninternational prices, as has Iraq's failure to return to pre-war
\nexport levels has helped buoy prices this year.<\/p>\n
A senior Iraq oil official said on Monday that the country's
\nnorthern oil export pipeline was still not secure enough to
\nrestart despite new U.S. led forces deployed to protect it.<\/p>",
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