IPE Oct Brent crude futures were called to open 5-10 U.S. cents per barrel lower Thursday, continuing losses from last night that saw front-month Brent settle down 97c at $31.53 per barrel. Volatility is expected ahead of today's expiry of Oct Brent. At 0800 GMT, IPE Oct gas oil futures traded at $320.00, down $1.00.
MARKET:
Brokers said there was pre-expiry liquidation on the front-month Brent contract Wednesday which widened the Oct/Nov contango to 47c by the close. "People preferred to liquidate rather than roll-over," said one broker.
"There should be some volatility today but October's been left behind a bit. Most action will be on November."Kuwait's Oil Minister Sheikh Saud Nasser Al-Sabah was quoted Thursday as saying he did not expect a decline in oil prices before January or February.
In an interview with the London-based Arabic daily Al-Hayat, Sheikh Saud justified the latest rise in oil prices as a "correction," and ruled out a tangible increase in OPEC's output even when oil ministers meet again on Nov.
12 because, he said, OPEC was currently producing at nearly "full capacity."
Meanwhile, Venezuelan oil minister and current OPEC president Ali Rodriguez said Wednesday that crude oil prices could begin to fall during the second quarter of 2001 if oil production and inventories rise "too much."
Rodriguez, in his first meeting with local press since OPEC's decision Sunday in Vienna to boost output for the third time this year, said speculation has added $8 a barrel to the current price.
UPCOMING:
IPE Oct Brent futures expire today.
IPE Oct gas oil options Oct. 5.
NYMEX Oct crude futures expire Sept. 20, Oct options Sept. 15.
NYMEX Oct product futures expire Sept. 29, Oct product options Sept. 26.
PRICES: (0800 GMT):
IPE Oct gas oil
Last $320.00, High $320.00, Low $317.00,Change down $1.00
Access WTI Oct
Last $33.95, High $34.00, Low $33.75, Change up 13c
( petroleumworld )
© 2000 Mena Report (www.menareport.com)
