The price of oil sagged on Friday, November 30 in response to a six-month rollover of the UN oil-for-food program with Iraq, which quelled concerns about an export halt by the Baghdad regime.
Benchmark Brent North Sea crude for January delivery stood at $18.39 a barrel, down two cents from Thursday evening. New York light sweet crude futures lost $.60 overnight to $18.62. Traders have been keeping a wary eye on relations between Iraq and Western powers in recent days after US President George W. Bush told the Baghdad regime it must allow UN arms inspectors back in Iraq to prove to the world it is not developing weapons of mass destruction -- a demand rejected by Iraq.
But news that the UN Security Council had extended the oil-for-food program for another 180 days until May 30 next year eroded support from such worries. "Iraq has been sorted out, so (there is) no real support from any disturbances on the oil flow from Iraq," ABN Amro trader Philip Oxley said. Traders were still waiting to see whether major crude producers would find agreement on a proposed pact to slash supply in line with demand in response to the recent price slump. — (AFP, London)
© Agence France Presse 2001
© 2001 Mena Report (www.menareport.com)
