Crude oil prices fell on Monday ahead of a closely watched Opec meeting, despite persistent supply fears tied to Iran’s diplomatic stand-off with the West over its nuclear ambitions and militant attacks in Nigeria.
Light, sweet crude for March delivery fell 14 cents to $67,62 a barrel in electronic trading on the New York Mercantile Exchange by midday in Europe.
March Brent crude on London’s ICE Futures exchange fell 29 cents to $65,95 a barrel.
On the Nymex, heating oil was flat at $1,8069 a gallon (3,8 litres), while natural gas for March delivery advanced nearly 29 cents to $8,795 per 1 000 cubic feet.
Opec is unlikely to cut production, although Iran, the group’s second-largest producer — under international pressure over its renewed nuclear programme — cites a build-up of excess supply as reason for a cut.
But Saudi Oil Minister Ali Naimi, one of Opec’s most influential voices, said on Sunday as he arrived in Vienna ahead of the meeting that the cartel had no reason to cut its output at this meeting or this year.
Iran insists the restarting of its nuclear programme is aimed at generating electricity, while the US and several European countries fear it could lead to nuclear weapons.
Germany, France, Britain and the US have called for Iran’s referral to the United Nations Security Council, a move that could lead to sanctions. China and Russia remain unconvinced.
In Nigeria’s restive south, gunmen robbed South Korea’s Daewoo oil company offices of over $250 000 in cash, police said on Sunday.
Four foreign oil workers held hostage by a militia in southern Nigeria since January 11 were released on Monday, said Ekiyor Welson, a regional government spokesperson.
A rash of violence and hostage takings that began earlier this year in the area of swamps and creeks has left over two dozen dead, cut exports and helped push up crude prices. It was the second such armed robbery in days in the oil-producing region in Nigeria, Africa’s largest petroleum exporter. – Sapa-AP