Oil trades lower as China set to raise fuel prices
Oil prices were down in Asia today after China said it was raising domestic fuel prices and Saudi Arabia announced an output increase.
By Agencies |
SINGAPORE: Oil prices were down in Asia on Friday after China said it was raising domestic fuel prices and Saudi Arabia announced an output increase.
Saudi Arabia, the biggest producer in the OPEC cartel, said it planned to increase oil output by 200,000 barrels per day.
The announcement came as Anglo-Dutch oil giant Shell said it shut down a Nigerian offshore oilfield, with the capacity of 200,000 barrels a day, after an attack by militants.
The benchmark futures contract, New York's light sweet crude for July delivery, was 56 cents lower at USD 131.37 a barrel. Yesterday it slid USD 4.75 to close at USD 131.93 on the New York Mercantile Exchange.
Brent North Sea crude for August delivery eased 13 cents to USD 131.87 after dropping 4.44 dollars to settle at USD 132 in London.
China will raise petrol and diesel prices by more than 16 percent from Friday to reduce the gap with soaring international oil prices, the official Xinhua news agency reported.
Prices were raised to ensure supplies by reducing the gap between soaring international crude prices and state-set domestic oil prices, the commission said.
Analysts have said China's thirst for oil to power its economic growth has been a major factor behind soaring world oil prices.
Global finance officials fear the runaway oil price - which surged to almost USD 140 on Monday - poses a threat to world economic growth as higher inflation leads central banks to raise interest rates.
Saudi Arabia had not been expected to announce a production increase until a high-level meeting between producers and consumer nations Sunday in Jeddah to discuss soaring prices.
The increase was announced on the website of Saudi Arabia's embassy in London.
Saudi Arabia, the biggest producer in the OPEC cartel, said it planned to increase oil output by 200,000 barrels per day.
The announcement came as Anglo-Dutch oil giant Shell said it shut down a Nigerian offshore oilfield, with the capacity of 200,000 barrels a day, after an attack by militants.
The benchmark futures contract, New York's light sweet crude for July delivery, was 56 cents lower at USD 131.37 a barrel. Yesterday it slid USD 4.75 to close at USD 131.93 on the New York Mercantile Exchange.
Brent North Sea crude for August delivery eased 13 cents to USD 131.87 after dropping 4.44 dollars to settle at USD 132 in London.
China will raise petrol and diesel prices by more than 16 percent from Friday to reduce the gap with soaring international oil prices, the official Xinhua news agency reported.
ADVERTISEMENT
Prices were raised to ensure supplies by reducing the gap between soaring international crude prices and state-set domestic oil prices, the commission said.
Analysts have said China's thirst for oil to power its economic growth has been a major factor behind soaring world oil prices.
Global finance officials fear the runaway oil price - which surged to almost USD 140 on Monday - poses a threat to world economic growth as higher inflation leads central banks to raise interest rates.
Saudi Arabia had not been expected to announce a production increase until a high-level meeting between producers and consumer nations Sunday in Jeddah to discuss soaring prices.
ADVERTISEMENT
The increase was announced on the website of Saudi Arabia's embassy in London.
Download
The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.
The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.
Download
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
ADVERTISEMENT
