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Crude oil price reaches $63 in New York |
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Written by Suresh Sharma
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Saturday, 17 September 2005 |
Oil prices started declining after reaching at a ceiling point as the world's leading producers lowered their estimates for global demand and appeared set to raise output quotas.
 Light sweet crude oil for next month delivery which is the New York's main contract, fell 1.75 dollars to close at 63.00 dollars a barrel on the New York Mercantile Exchange. In London, the price of Brent North Sea crude for October delivery declined 1.85 dollars to 61.81 dollars a barrel.
John Herrlin, Merrill Lynch 'research analyst said, “The IEA releases still take weeks to reach our shores, but will be coming. Clean tanker rates have raised and even the IEA and likely OPEC don't see the need to up more sour/heavy oil output. In the coming weeks, gasoline demand shall continue to wane given price based demand loss and the end of the summer driving season."
A new published report shows that the Organization of Petroleum Exporting Countries (OPEC) has reduced its 2005 world oil-demand forecast by 150,000 barrels a day. The 11-member association that pumps a third of the world's daily diet of 84 million barrels of crude meets to take decision on future output. They are expected to increase their output quotas.
The Minerals Management Service said over 56 percent of daily oil production in the Gulf remains blocked, about 35 percent of which is shut in due to problems with onshore infrastructure. Oil companies have bought 11 million barrels of crude from the U.S. government's reserve. |
