Oil prices eased slightly on Tuesday, June 5, morning after Saudi Arabia played down fears that a decision by Iraq to suspend its exports of crude oil would result in a world oil shortage.
The price of a barrel of Brent North Sea crude for July delivery eased nine cents to $29.17 in early deals. New York futures gained 20 cents on Monday to $28.13 a barrel.
Dealers said all eyes remained trained on the meeting of the Organisation of Petroleum Exporting Countries (OPEC) in Vienna, which has been dominated by Iraq's decision because of UN plans to modify the 11-year sanctions regime against Baghdad.
Concern persists that the removal from world markets of Iraqi export volumes, which usually top two million barrels a day, could lead to a shortage of crude and drive prices up.
But Saudi Arabian Oil Minister Ali al-Nuaimi told journalists in Vienna: "I can assure you there will be no shortage in the market." — (AFP)
© Agence France Presse
© 2001 Mena Report (www.menareport.com)