Crude oil prices to stay over $30 a barrel
Monday, June 26 2000 - 04:00 AM WIB
Crude oil prices are likely to stay over US$30 a barrel because the producer cartel OPEC only agreed to supply an additional 708,000 barrels per day to the market amid the heightening gasoline politics in the U.S.
On Friday, crude oil prices in New York rose to $32.70 per barrel for August delivery. In London (the International Petroleum Exchange, crude was closed at $30.43 a barrel, while spot prices stayed at $29 a barrel.
According to analysts and traders in New York, crude oil prices would decrease only when the Organization of Petroleum Exporting Countries (OPEC) agreed to supply 1 million more crude oil to the market.
They said that the decision by 10-member countries in OPEC to add supply by 708,000 barrels per day of crude oil to a total of 25.4 million barrels per day would only stop oil prices to increase further, but it will not bring the prices down.
"Because the reality show that crude oil supply in the world market remains tight, especially because of the low level of crude and fuel stocks in the U.S.," one analyst told Reuters.
Meanwhile, Saudi oil minister Ali al-Naimi called on consumer countries to help curb the soaring crude oil prices. (*)