Oil prices firmer in Asian trade
Oil prices firmed in Asian trade on Wednesday increased confidence that OPEC will follow through on promised production cuts, dealers said.
By Agencies |
SINGAPORE: Oil prices firmed in Asian trade on Wednesday increased confidence that OPEC will follow through on promised production cuts, dealers said.
At 10:52 am New York's main contract, light sweet crude for December delivery, was up 22 cents at $59.57 a barrel from $59.35 in late US trade on Tuesday.
Brent North Sea crude for December delivery rose 24 cents to $60.10. "I think we've had a fairly decent rise in prices after a few days of uncertainty," said Tony Nunan, of Mitsubishi Corporation's international petroleum business in Tokyo.
"The announced cutbacks from Saudi (Arabia), the biggest, most important player in OPEC, is a sign of the seriousness of the cuts." The market had been awaiting evidence from the Organization of the Petroleum Exporting Countries that the 11-member cartel would cut output, as promised, by 1.2 million barrels per day from November 1. Saudi Arabia, which is to shoulder nearly a third of the output cuts, has told its Asian customers it will reduce their November deliveries by eight percent.
Nunan said the market was seeing a delayed reaction to the announcement.
OPEC, which produces more than one third of the world's oil, last week decided at an extraordinary meeting in Doha to cut its output in a bid to support price, which have fallen by more than 25 per cent from record highs above $78 in July and August.
At 10:52 am New York's main contract, light sweet crude for December delivery, was up 22 cents at $59.57 a barrel from $59.35 in late US trade on Tuesday.
Brent North Sea crude for December delivery rose 24 cents to $60.10. "I think we've had a fairly decent rise in prices after a few days of uncertainty," said Tony Nunan, of Mitsubishi Corporation's international petroleum business in Tokyo.
"The announced cutbacks from Saudi (Arabia), the biggest, most important player in OPEC, is a sign of the seriousness of the cuts." The market had been awaiting evidence from the Organization of the Petroleum Exporting Countries that the 11-member cartel would cut output, as promised, by 1.2 million barrels per day from November 1. Saudi Arabia, which is to shoulder nearly a third of the output cuts, has told its Asian customers it will reduce their November deliveries by eight percent.
Nunan said the market was seeing a delayed reaction to the announcement.
OPEC, which produces more than one third of the world's oil, last week decided at an extraordinary meeting in Doha to cut its output in a bid to support price, which have fallen by more than 25 per cent from record highs above $78 in July and August.
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