In partnership with
All data is delayed
See More

Oil dips ahead of Opec meeting

Jun 13 2012 08:13

Singapore - Oil was lower in Asian trade on Wednesday on the eve of an Opec ministerial meeting in Vienna to discuss production quotas, analysts said.

The oil markets were also under pressure from growing worries over the economic crisis in Europe despite a massive bailout of up to €100bn to rescue Spain's ailing banking sector, they said.

New York's main contract, light sweet crude for delivery in July, eased 30 cents to $83.02 a barrel and Brent North Sea crude for July delivery fell 12c to $97.02 a barrel.

"Pessimism in Europe continues to grow... with fears that a worsening in conditions will further reduce the already-weak European oil demand," said Sanjeev Gupta, Ernst and Young's regional head of oil and gas practice.

The Opec ministerial meeting Thursday will be widely watched as kingpin Saudi Arabia's call for existing output levels to be raised appeared to be facing opposition from other members including Venezuela.

Dow Jones Newswires quoted Venezuelan oil minister Rafael Ramirez as saying that "some countries in the Gulf have an over-production. We are going to discuss that.

"It will have to be reduced... We estimate that we have an over-production of 3.0 million barrels a day" above the ceiling of 30 mbpd that was decided in December, Ramirez said.

The 12-member cartel, which pumps about one third of the world's crude supplies, left its 2012 world oil demand outlook almost unchanged on Tuesday, citing price volatility and pressure on the global economy.

commodities  |  markets  |  oil



Read Fin24’s Comments Policy publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
Comments have been closed for this article.

Company Snapshot

We're talking about...


So, the worst has finally happened. S&P and Fitch officially downgraded SA to junk status following the ill-timed Cabinet reshuffle.

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

Do you have a budget set aside for Easter holiday spending?

Previous results · Suggest a vote