Oil prices tumble below $105

Oil prices dived under $105 on Tuesday, reaching four-month lows, after Hurricane Gustav apparently spared key United States energy facilities and Iran said the Organisation of the Petroleum Exporting Countries (Opec) must tackle excess production by members.

New York’s main contract, light sweet crude for October, dropped as much as $10 dollars to $105,46 a barrel from its closing level on Friday.

New York crude then rallied a little to stand at $105,96, down $9,50 from Friday. US markets were closed on Monday for the Labour Day holiday.

Brent North Sea crude for October fell to $104,14 at one stage, hitting levels last seen on April 4. It later recovered to stand at $104,86, a fall of $4,55 from Monday’s close.

Hurricane Gustav was downgraded to a category-one storm on Monday, easing fears that it could be as bad as the Hurricane Katrina disaster of 2005, which damaged major offshore oil installations in the Gulf of Mexico.

Meanwhile, on Tuesday, Iran called for Opec to discuss quota-busting by some members at its meeting in Vienna on September 9.

“The oil supply should be proportionate to demand and control of excess supply is an issue which should be addressed at the upcoming Opec meeting,” Oil Minister Gholam Hossein Nozari told the official IRNA news agency.

“Some Opec members are providing the market with excess supply and producing more than their Opec quota. Therefore, at the next meeting the members will request a stop to the excess supply,” he added.

$100 a barrel is “a minimum” for oil prices, said the minister, whose country is the world’s fourth-largest crude producer. — AFP

Subscribe to the M&G

These are unprecedented times, and the role of media to tell and record the story of South Africa as it develops is more important than ever.

The Mail & Guardian is a proud news publisher with roots stretching back 35 years, and we’ve survived right from day one thanks to the support of readers who value fiercely independent journalism that is beholden to no-one. To help us continue for another 35 future years with the same proud values, please consider taking out a subscription.

Related stories

The European companies that armed the Ivorian civil war

AN OCCRP investigation reveals that Gunvor and Semlex brokered weapons-for-oil deals in early 2011 when Côte d’Ivoire was in crisis, despite a UN arms embargo

Load-shedding’s silver lining: Lower levels of sulphur dioxide air pollution

Analysis of Nasa data shows that although SO₂ emissions around the world have fallen by about 6%, the levels are high enough to harm the health of billions of people.

Controversial oil reserves sale ‘corrupt’ and ‘dishonest’ court hears

The sale of South Africa’s crude oil reserves is now facing a criminal investigation by the Hawks

The coronavirus and the rise of the network society

Two kinds of virus, one biological and the other digital, have spread around the world, changing society and creating social elites

Remember, corporations are adept at deflection campaigns

In this moment where those corporations are “stepping up” to the Covid-19 challenge, let’s not forget their true character and where and how they have made their money

2019: The ones who left us

From Uyinene Mrwetyana, Oliver Mtukudzi to Xolani Gwala, Mail & Guardian remembers those who have passed on

Subscribers only

Toxic power struggle hits public works

With infighting and allegations of corruption and poor planning, the department’s top management looks like a scene from ‘Survivor’

Free State branches gun for Ace

Parts of the provincial ANC will target their former premier, Magashule, and the Free State PEC in a rolling mass action campaign

More top stories

Mboweni plans to freeze public sector wage increases for the...

The mid-term budget policy statement delivered by the finance minister proposes cutting all non-interest spending by R300-billion.

SAA to receive R10.5-billion government bailout after all

Several struggling state-owned entities received extra funds after the medium term budget policy speech

Malawi court judges win global prize

Members of the small African country’s judiciary took a stand for democracy to international approval

press releases

Loading latest Press Releases…

The best local and international journalism

handpicked and in your inbox every weekday