Oil tiptoes down, awaits news on cuts<\/p>\n
SINGAPORE (Reuters): Oil prices were marginally softer on
\nMonday despite renewed calls from some OPEC producers for fresh
\ncurbs on output when the cartel meets to review production policy
\non Friday.<\/p>\n
U.S. benchmark light, sweet crude lost 11 cents in electronic
\ndealings to stand at $27.90 a barrel after retreating more than
\n30 cents on Friday in New York.<\/p>\n
The Organization of Petroleum Exporting Countries is widely
\nexpected to agree a second round of output restraints when it
\nmeets on March 16 to avoid a supply overhang in the second
\nquarter, a period of seasonally weak demand.<\/p>\n
But traders are waiting for a clear signal on the size of any
\nreduction, which is expected to be between 500,000 and one
\nmillion barrels per day (bpd).<\/p>\n
A Kuwaiti media report on Monday said Kuwait would back a cut
\nof between 500,000 and 750,000 bpd.<\/p>\n
\"Kuwait supports OPEC's inclination for a limited production
\ncut of between 500,000-750,000,\" al-Rai al-Aam newspaper quoted
\nKuwaiti oil sources as saying.<\/p>\n
Oil Minister Adel al-Subaih declined to confirm the report.<\/p>\n
Saudi Arabia, the world's largest crude producer, reiterated
\non Friday that it saw a strong possibility for an agreement
\nbetween the cartel's 11 members to cut production.<\/p>\n
Iran, OPEC's second biggest producer, and Qatar again
\nexpressed their wish to see a cut but did not specify how big
\nthis should be.<\/p>\n
Iranian Oil Minister Bijan Zanganeh was quoted by state
\ntelevision as saying on Sunday that the market faced an
\noversupply of 2.6 million bpd without a cut in production.<\/p>\n
Iran and Qatar also called for producers outside of OPEC to
\nrestrain output.<\/p>\n
OPEC's Saudi Arabia and Venezuela were due to hold talks with
\nnon-OPEC Mexico in Riyadh at 1530 GMT on Monday.<\/p>\n
Mexican Energy Minister Ernesto Martens held 90 minutes of
\ntalks with Saudi Oil Minister Ali al-Naimi on Sunday during which
\nthey discussed how to balance world oil markets.<\/p>\n
It was not immediately clear whether Mexico had been persuaded
\nto participate in OPEC's widely expected cuts.<\/p>\n
Prior to his Riyadh visit, Martens had repeatedly said there
\nwas no need for further output curbs as the global supply-demand
\nsituation was largely balanced, a view also held by non-OPEC
\nNorway, the world's second largest exporter after Saudi Arabia.<\/p>\n
\"We have reviewed oil market conditions and we are working
\ntogether to preserve market balance and ensure the interests of
\nproducers and consumers,\" Martens told the official Emirate news
\nagency WAM after the talks.<\/p>\n
Mexico, Saudi Arabia and Venezuela were the architects of a
\nseries of output cuts between 1998 and 1999 following a slump in
\noil prices to about $10 a barrel.<\/p>\n
Those curbs between OPEC and non-OPEC producers helped to more
\nthan triple crude prices to above $35 a barrel in 2000, the
\nhighest level in a decade.<\/p>\n
Soaring energy bills last year, however, raised calls from big
\nconsuming nations for higher output because of the risk of
\ninflation and damage to economic growth.<\/p>\n
OPEC raised production four times in 2000 by a total 3.7
\nmillion bpd.<\/p>\n
The cartel now fears supplies will far outstrip demand in the
\nsecond quarter when peak winter demand ebbs. It is also worried
\nby signs of a global economic slowdown, which could dent growth
\nin petroleum demand.<\/p>\n
The group wants to keep prices at about $25 a barrel for a
\nreference basket of crudes. OPEC's reference basket stood at
\n$25.11 a barrel on Thursday.<\/p>\n
The basket price would peg a target level for U.S. crude at
\nabout $29 a barrel.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/oil-tiptoes-down-awaits-news-on-cuts-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}