Oil extended gains to above $82 a barrel on Wednesday, rising to within $2 of this year's high as Saudi Arabia's oil minister described prices as beautiful at Opec's production meeting in Vienna.
The Organisation of the Petroleum Exporting Countries (Opec), which pumps roughly one in every three barrels of oil, is expected to leave output targets in place at its meeting on Wednesday. US crude for April delivery was up 51 cents at $82.21 a barrel by 0954 GMT, after settling up $1.90 at $81.70 on Tuesday. London Brent crude rose 55 cents to $81.08.
Since agreeing to curb output to below 25 million barrels per day (bpd) in December 2008 as the financial crisis intensified, Opec has seen prices rally from lows below $40 a barrel to a peak of $83.95 at the start of this year.
But while prices are now above the group's target of $75 a barrel, Opec's Ecuadorian President Germanico Pinto said before the meeting there is still a long way to go before the group will feel at ease with the market due to fears of a double-dip recession.
The oil minister of Saudi Arabia, Opec's largest producer and the country with the world's largest proven oil reserves, appeared more relaxed.
Ali al-Naimi, speaking before the start of the meeting, said global oil demand will grow by about 1 million bpd by the second half of this year and said ministers were in agreement that there is no need for the group to change its oil output. Good demand, reliable supply, beautiful prices—we are very happy, Naimi said. Naimi has previously said prices around $75 a barrel are necessary to encourage investment in future oil supplies to cope with booming demand from emerging economies, and are ultimately good for both producers and consumers. The world is going to need a lot energy, all kinds of energy, Naimi said on Wednesday.
But rising prices at the pumps have threatened to squeeze consumers still struggling in the aftermath of the worst recession for 70 years.
Retail gasoline prices in the United States soared to their highest level in nearly a year and a half last week and could soon top $3 a gallon, the US Department of Energy said on Monday. Unemployment in the world's largest energy consumer is almost 10%.
Oil prices were boosted further by news that Russian state oil major Rosneft faces an export deadlock after bankrupt rival YUKOS won.US and British court injunctions making cash payments to Rosneft in the West very complex, market sources told Reuters on Wednesday.
Rosneft declined to comment on the injunctions, which trade and industry sources said were part of a legal battle between YUKOS and the Russian government, which dissolved YUKOS and sold most of its assets to Rosneft after putting increasing pressure on the company between 2003 and 2007
The Organisation of the Petroleum Exporting Countries (Opec), which pumps roughly one in every three barrels of oil, is expected to leave output targets in place at its meeting on Wednesday. US crude for April delivery was up 51 cents at $82.21 a barrel by 0954 GMT, after settling up $1.90 at $81.70 on Tuesday. London Brent crude rose 55 cents to $81.08.
Since agreeing to curb output to below 25 million barrels per day (bpd) in December 2008 as the financial crisis intensified, Opec has seen prices rally from lows below $40 a barrel to a peak of $83.95 at the start of this year.
But while prices are now above the group's target of $75 a barrel, Opec's Ecuadorian President Germanico Pinto said before the meeting there is still a long way to go before the group will feel at ease with the market due to fears of a double-dip recession.
The oil minister of Saudi Arabia, Opec's largest producer and the country with the world's largest proven oil reserves, appeared more relaxed.
Ali al-Naimi, speaking before the start of the meeting, said global oil demand will grow by about 1 million bpd by the second half of this year and said ministers were in agreement that there is no need for the group to change its oil output. Good demand, reliable supply, beautiful prices—we are very happy, Naimi said. Naimi has previously said prices around $75 a barrel are necessary to encourage investment in future oil supplies to cope with booming demand from emerging economies, and are ultimately good for both producers and consumers. The world is going to need a lot energy, all kinds of energy, Naimi said on Wednesday.
But rising prices at the pumps have threatened to squeeze consumers still struggling in the aftermath of the worst recession for 70 years.
Retail gasoline prices in the United States soared to their highest level in nearly a year and a half last week and could soon top $3 a gallon, the US Department of Energy said on Monday. Unemployment in the world's largest energy consumer is almost 10%.
Oil prices were boosted further by news that Russian state oil major Rosneft faces an export deadlock after bankrupt rival YUKOS won.US and British court injunctions making cash payments to Rosneft in the West very complex, market sources told Reuters on Wednesday.
Rosneft declined to comment on the injunctions, which trade and industry sources said were part of a legal battle between YUKOS and the Russian government, which dissolved YUKOS and sold most of its assets to Rosneft after putting increasing pressure on the company between 2003 and 2007
Source: Financial Express
___________________________________________________________________________
Posts
No comments:
Post a Comment