29-10-04
The president of OPEC, the oil producers' cartel, called an end to the season
of high crude oil prices by stating that stocks had returned to normal levels. US government data showed extra output was making its way into refiners'
tanks, with stocks jumping by a much bigger than expected 4 mm barrels. That
eased some concerns over a potential winter shortage, although heating oil
supplies fell to 15 % below last year, leaving some regions susceptible to a
supply squeeze if winter weather descends on the region early or severely. The rise in interest rates in China has raised doubts about continuing high
demand for oil.
Source: This Is MoneyPresident of OPEC believes crude oil prices will keep falling
A day after US crude fell $ 1.54 to $ 50.92 a barrel, Purnomo Yusgiantoro said:
“Oil supplies are normal again -- we expect prices to keep falling.”
Traders have also breathed easier as US Gulf of Mexico production comes back on
line after September's Hurricane Ivan.
In London, Brent crude was trading down 57 cents at $ 47.80 a barrel, while US
light, sweet crude wasdown 39 cents at $ 50.53 a barrel in early Asian dealing.