Oil keeps sliding as OPEC opens taps<\/p>\n
Reuters, London<\/p>\n
Oil prices fell further on Tuesday, bringing losses so far
\nthis week to more than a dollar a barrel as extra supplies from
\nOPEC eased worries over a summer fuel crunch.<\/p>\n
U.S. light crude fell 38 U.S. cents to US$37.21 a barrel, down
\n12 percent from a 21-year peak struck on June 2 at $42.45.
\nLondon's Brent crude was 62 cents cheaper at $34.87 a barrel.<\/p>\n
Analysts said estimates that the Organisation of the Petroleum
\nExporting Countries was pumping at the fastest rate in nearly
\nfour years and that fuel stockpiles were building had encouraged
\na sell-off, led by speculative investment funds.<\/p>\n
\"People seem more certain that the higher supply is coming
\nthrough from OPEC,\" said analyst Steve Turner of Commerzbank.
\n\"We're still in the trend established in the last two weeks,
\nwhich is one of lower prices following stock builds.\"<\/p>\n
Output by the 10 OPEC members bound by quotas was expected to
\nrise by 800,000 barrels per day (bpd) in June, said tanker
\ntracking consultancy Petrologistics.<\/p>\n
That would bring the OPEC-10 production to 27.4 million bpd,
\nfar in excess even of new higher formal output limits of 25.5
\nmillion bpd that come into force in July.<\/p>\n
Petrologistics reckoned output from Iraq, exempt from a quota,
\nwas 2.3 million bpd, taking overall OPEC production to 29.7
\nmillion bpd this month.<\/p>\n
Algerian Energy Minister Chakib Khelil said on Tuesday the
\nfall in prices was proof OPEC still had power to influence oil
\nmarkets.<\/p>\n
OPEC early this month decided to raise production by two
\nmillion bpd from July 1 and by another 500,000 bpd from August 1.
\nIt meets again on July 21 when it could review the second stage
\nof the deal.<\/p>\n
Khelil said OPEC probably would go ahead with the second stage
\nof the output increase and that high production levels were
\njustified by projections for strong demand growth in the third
\nand fourth quarters.<\/p>\n
\"For the time being we have already taken the decision. But in
\nJuly we will meet again and we will probably go for a decision to
\nincrease,\" Khelil told reporters.<\/p>\n
Data expected on Wednesday from the U.S. Energy Information
\nAdministration was predicted to show a rise of 1.55 million
\nbarrels in U.S. crude stocks.<\/p>\n
A Reuters poll of eight analysts also forecast U.S. gasoline
\nstocks would increase by 1.4 million barrels as U.S. refineries
\nramp up production to meet summer vacation demand.<\/p>\n
U.S. gasoline has been leading prices lower and fell another
\n1.15 cents to $1.1410 on Tuesday.<\/p>",
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