Oil prices drifted above $27 a barrel here on Monday amid forecasts of low temperatures across Europe this week.
A barrel of Brent North Sea reference crude for March delivery rose to $27.14 dollars a barrel from $26.98 at the close on Friday.
The New York light sweet crude March contract rose 41 cents on Friday to $29.77.
"There was no fresh news over the weekend just the fact that there is cold weather expected out in Europe over the next 10 to 14 days," said ABN Amro trader Steve Rout. "And that might just give a little bit of support."
Rout said prices had settled within a tight range with technical support at $26.52 and resistance at $27.28.
On the supply side, Iraq has reportedly found customers for its oil exports after lowering a surcharge which circumvents UN control of its revenues.
The Middle East Economic Survey (MEES) said US and British oil majors such as ExxonMobil, Texaco and BP, whose countries take the hardest line on implementing the sanctions regime on Iraq, had been purchasing Iraqi oil through third parties, often small companies.
"Major consuming countries are turning a blind eye to Iraq's efforts to impose the surcharge, perhaps because Iraqi oil supplies are needed in order to help bring world oil prices down," the Cyprus-based industry newsletter said.
The fitful level of Iraqi output has disturbed markets for two months, ever since Baghdad froze exports briefly in December as the surcharge row with the United Nations blew up.
In January, exports recovered to around 1.17 million barrels per day (bpd), compared to 600,000 bpd the previous month but still down on the normal rate of 2.25 million bpd, MEES said.
The Organization of Petroleum Exporting Countries (OPEC) composite price of seven world crudes stood at $25.14 on Friday from $25.22 on Thursday, according to OPECNA.
The OPEC news agency said the basket price has averaged $23.91 a barrel so far this year, from $24.13 in December and $31.22 in November.
The price averaged $28.73 in the fourth quarter of 2000, from $29.17 in the third quarter, and averaged $27.60 for the whole of 2000 compared with $17.47 in 1999.—AFP.
©--Agence France Presse. 2001.
© 2001 Mena Report (www.menareport.com)
