• Three cheers for Thuli

    Where are South Africa’s men and women of honour, asks Mandi Smallhorne.

  • Structure your pension

    An expert explains the ins and outs of different types of retirement annuities.

  • Inside Labour

    Without radical policy change SA's social fabric will continue to fray, says Terry Bell.

Data provided by iNet BFA
Loading...
See More

Oil jumps on unchanged Opec output

Jun 09 2011 09:37 Sapa

Related Articles

Oil rises as Opec talks break down

Oil prices mixed as Opec mulls output boost

Oil below $99 ahead of Opec meeting

Oil prices fall as Opec meets on output

Recovery jitters drag oil down

Oil drops ahead of Opec meeting

 

Singapore - Oil prices rose above $101 a barrel on Thursday in Asia, extending gains from the previous session after Opec leaders unexpectedly left crude production quotas unchanged.

Benchmark oil for July delivery was up 59 cents to $101.33 a barrel at midday Singapore time in electronic trading on the New York Mercantile Exchange. The contract gained $1.65 to settle at $100.74 on Wednesday.

In London, Brent crude for July delivery was up 12c to $117.97 a barrel on the ICE Futures exchange.

Leaders of the Organisation of Petroleum Exporting Countries, a cartel that controls about 35% of global crude output, surprised investors by deciding not to boost production quotas at a meeting Wednesday in Vienna. Analysts had expected an increase of between 1 million and 2 million barrels per day.

Saudi Arabia, the group's biggest supplier, seeks an oil price range between $70 and $80 and supported an output hike. Meanwhile, Iran, the second-largest producer, and other Opec members such as Venezuela and Algeria, sought to keep quotas unchanged. Opec said the group was unable to reach a consensus and will discuss production levels again at its next meeting in three months.

Saudi oil minister Ali Naimi called the meeting "one of the worst ever."

Analysts expect Saudi Arabia would likely raise its production independently if crude prices jump much higher above $100.

"We suspect that if prices pick up any further, those members that did want to increase quotas, led by Saudi Arabia, will simply increase supply anyway," Capital Economics said in a report.

In other Nymex trading in July contracts, heating oil fell 0.4 cent to $3.09 a gallon and gasoline dropped 1.0c to $2.99 a gallon. Natural gas futures slid 1.7c to $4.83 per 1 000 cubic feet.

opec  |  commodities  |  markets  |  oil
NEXT ON FIN24X

 
 
 

Read Fin24’s Comments Policy

24.com 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
0 comments
Add your comment
Comment 0 characters remaining
 

Company Snapshot

We're talking about:

Small Business

“Hippie sense makes business sense,” an entrepreneur said, adding that "purpose" was core to success.
 

Money Clinic

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