Oil Price Plummets to 63 Dollars in New York
Posted on: Saturday, 17 September 2005, 09:00 CDT
Oil price plummets to 63 dollars in New York
NEW YORK, Sept. 16 (Xinhua) -- Oil prices dropped Friday amid a declining world crude demand and a looming supply improvement.
Light sweet crude oil for October delivery, New York's main contract, fell sharply 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.
"The IEA releases still take weeks to reach our shores, but will be coming. Clean tanker rates have risen, and even the IEA and likely OPEC don't see the need to up more sour/heavy oil output", John Herrlin, Merrill Lynch 'research analyst said Friday. "In the coming weeks, gasoline demand shall continue to wane given price based demand loss and the end of the summer driving season. Swing factors remains the same: Weather infrastructure recovery and demand loss".
In a monthly report published Thursday, the Organization of Petroleum Exporting Countries(OPEC) cut its 2005 world oil-demand forecast by 150,000 barrels a day. The 11-member cartel, which pumps a third of the world's daily diet of 84 million barrels of crude, meets Monday to decide on future output.They are expected to increase their output quotas.
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, the Minerals Management Service said Thursday. Oil companies have bought 11 million barrels of crude from the U.S. government's reserve.
President Hugo Chavez of Venezuela--an OPEC member and the world's fifth-largest oil exporter--said Thursday at a U.N. summit in New York that prices could rise to 100 dollars per barrel because members of the cartel are pumping at near capacity and oil reserves are running out.
Source: Xinhua News Agency - CEIS
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