Crude prices lower in Asian trade
Crude prices were lower in Asian trade Monday on mild US weather, ample supplies of heating oil products and confusion over planned production cuts by OPEC, dealers said.
By Agencies |
SINGAPORE: Crude prices were lower in Asian trade Monday on mild US weather, ample supplies of heating oil products and confusion over planned production cuts by OPEC, dealers said.
At 0225 GMT, New York's main contract, light sweet crude for December delivery shed 58 cents at $58.39 a barrel.
Brent North Sea crude for January delivery lost 49 cents at $58.50.
Global crude prices plunged to their lowest level in 17 months last week before recovering slightly, dealers said.
"The market finished low last week and it is continuing this morning," said Victor Shum, the senior principal with Purvin and Gertz energy consultancy in Singapore.
"It's really a combination of factors that has caused the market to come down; the OPEC cuts and their credibility and the winter weather in the northern hemisphere," said Shum.
The 11-member OPEC decided on October 20 to slash its production by 1.2 million barrels per day (bpd) from the start of November due to what it said was an over-supplied market to support prices which have fallen from record highs of above $78 earlier this year.
According to an analysis by "Petrologistics", OPEC's exports have fallen 1.1 million bpd in November.
However, a separate report by Oil Movements estimated that the cartel's exports actually rose by 210,000 bpd starting November 4, and were likely to remain at such a level through to December two.
At 0225 GMT, New York's main contract, light sweet crude for December delivery shed 58 cents at $58.39 a barrel.
Brent North Sea crude for January delivery lost 49 cents at $58.50.
Global crude prices plunged to their lowest level in 17 months last week before recovering slightly, dealers said.
"The market finished low last week and it is continuing this morning," said Victor Shum, the senior principal with Purvin and Gertz energy consultancy in Singapore.
"It's really a combination of factors that has caused the market to come down; the OPEC cuts and their credibility and the winter weather in the northern hemisphere," said Shum.
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The 11-member OPEC decided on October 20 to slash its production by 1.2 million barrels per day (bpd) from the start of November due to what it said was an over-supplied market to support prices which have fallen from record highs of above $78 earlier this year.
According to an analysis by "Petrologistics", OPEC's exports have fallen 1.1 million bpd in November.
However, a separate report by Oil Movements estimated that the cartel's exports actually rose by 210,000 bpd starting November 4, and were likely to remain at such a level through to December two.
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