World oil prices were mixed on Monday, continuing to rally in New York from last week’s four-month low point but falling in London as traders monitored weather patterns in the northern hemisphere.
The chief of the Organisation of Petroleum Exporting Countries (Opec), Kuwaiti Energy Minister Sheikh Ahmad Fahd al-Sabah, ruled out any cut in oil production despite last week’s sharp decrease in prices caused largely by mild weather in Europe and the north-east United States.
New York’s main contract, light sweet crude for delivery in December, climbed 16 cents to close at $57,69 a barrel.
But in London, the price of Brent North Sea crude for December delivery lost 26 cents to $57,69 a barrel. The contract had spent much of the day trading in positive territory.
For most of Monday, oil futures ”were higher on the back of cold weather”, Sucden analyst Sam Tilley said. ”The US north-east, the world’s largest heating-oil consumer, and Europe are in for colder weather, according to forecasters.”
The rally in prices in New York came after New York crude futures had fallen to $57,53 on Friday, the lowest finish since July 21.
Prices were weighed down also by rising crude stockpiles in the US, which has reinforced signs of waning demand after a summer rally that took oil prices to record high points above $70 a barrel in New York.
The rebound ”certainly is a bit of a buy on weakness”, said Mark Pervan, a commodities analyst with Daiwa Securities. ”The markets have been pretty sold down in the last couple of days … we still have potentially strong demand ahead of us and the market is not prepared to sell down too quickly yet.”
Crude futures in New York had fallen by more than 18% by Friday since reaching a record high point of $70,85 on August 30, a day after Hurricane Katrina hit Gulf of Mexico oil installations and onshore refineries.
Meanwhile, traders were digesting comments surrounding Opec.
Asked if Opec was planning to cut production, Sheikh Ahmad told reporters in Kuwait on Monday: ”No, until now I do not think that we have to cut production.”
US Energy Secretary Samuel Bodman, visiting Kuwait, voiced confidence that Opec would decide to provide ”sufficient” crude to the world market at its meeting next month in the Gulf state.
”I expect that they [Opec] will do that and I have no doubt that will be the outcome of the Opec meeting,” on December 12, Bodman told reporters at Kuwait airport before heading to neighbouring Qatar. — Sapa-AFP