/ 17 May 2000

OIL PRICE SLIPS LOWER

CRUDE prices slipped lower in midday trading on Wednesday following the publication of US supply figures and as the market digested comment from the world’s leading producer Saudi Arabia about expected output levels. In London, the benchmark Brent crude for July delivery was trading three cents lower at $27,8 a barrel. In New York on Tuesday, light sweet crude for June delivery closed at $29,73, down slightly from Monday’s close of $29,92. On Tuesday oil prices were initially spurred by comment from Saudi Arabian Oil Minister Ali al-Nuaimi which appeared to rule out an output increase at the next Organisation of Petroleum Exporting Countries meeting in June. At its meeting in March, Opec agreed that if average prices fell above or below a range of 22 to 28 dollars a barrel, production would be automatically decreased or increased by 0,5-million barrels a day to maintain price stability.