Oil prices up in Asian trade
Oil prices extended gains in Asian trade on Tuesday amid expectations that OPEC will cut output further this weekend, analysts said.
By Agencies |
SINGAPORE: Oil prices extended gains in Asian trade on Tuesday amid expectations that OPEC will cut output further this weekend, analysts said.
New York's main futures contract, light sweet crude for delivery in April, rose 21 cents to 47.28 dollars a barrel. The contract hit a two-month high of 48.83 dollars in intra-day trade on Monday.
Brent North Sea crude for April climbed 22 cents to 44.35 dollars.
"Crude oil prices may be dictated by noise of further production cuts from OPEC nations this week, ahead of the meeting at the weekend, which might push oil prices toward 50 dollars per barrel," said Nimit Khamar, an analyst at British brokerage Sucden Financial.
The Organisation of the Petroleum Exporting Countries (OPEC), which pumps 40 percent of the world's oil, is due to meet on Sunday in Vienna and Libya's envoy to the group said that output cuts were a possibility.
"I will not say that we are going to cut but I will not exclude it. All options are open," Shukri Ghanem said.
"We will evaluate the world situation of the (crude) stocks, the price movement, the interpretation of the different countries... and then we can take a decision. But we don't have a decision at this time."
OPEC slashed output late last year by 4.2 million barrels per day in a bid to reverse tumbling prices and protect its revenues.
Prices are down from record highs of above 147 dollars hit in July 2008 as a global recession weakened demand for oil.
New York's main futures contract, light sweet crude for delivery in April, rose 21 cents to 47.28 dollars a barrel. The contract hit a two-month high of 48.83 dollars in intra-day trade on Monday.
Brent North Sea crude for April climbed 22 cents to 44.35 dollars.
"Crude oil prices may be dictated by noise of further production cuts from OPEC nations this week, ahead of the meeting at the weekend, which might push oil prices toward 50 dollars per barrel," said Nimit Khamar, an analyst at British brokerage Sucden Financial.
The Organisation of the Petroleum Exporting Countries (OPEC), which pumps 40 percent of the world's oil, is due to meet on Sunday in Vienna and Libya's envoy to the group said that output cuts were a possibility.
"I will not say that we are going to cut but I will not exclude it. All options are open," Shukri Ghanem said.
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"We will evaluate the world situation of the (crude) stocks, the price movement, the interpretation of the different countries... and then we can take a decision. But we don't have a decision at this time."
OPEC slashed output late last year by 4.2 million barrels per day in a bid to reverse tumbling prices and protect its revenues.
Prices are down from record highs of above 147 dollars hit in July 2008 as a global recession weakened demand for oil.
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