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The situation in Iraq continues to concern
oil traders (Agencies) |
Oil prices fell sharply on Thursday, falling back from recent
highs to their lowest levels in more than a month.
In New York a barrel of US light crude ended down
$2.03 to $48.85, the first time it has finished under $49 a barrel since
late September.
While in London, Brent crude closed down $1.61 to $45.95.
Analysts said rising crude stockpiles in the US were easing prices, but
others warned that ongoing violence in Iraq could easily reverse the
falls.
Another possible future supply pressure is the continuing threat of a
strike in Nigeria, Africa's largest oil producer.
"(US) Oil inventories should rise over the next six to nine months, and
this should eventually ease the extreme tightness in today's oil markets,"
said Adam Sieminski of Deutsche Bank.
Mr Sieminski said other factors that should help prices to fall were
weakening global oil demand, and rising supplies both from members of the
main OPEC oil producers group, and other oil exporting nations.
OPEC has recently lifted production of oil above 30
million barrels per day to meet booming
oil demand.
This supply surge has helped rebuild U.S. crude stocks, which have
risen 10 million barrels in the last two weeks.
Yet other oil analysts, such as Venezuela's energy minister Rafael
Ramirez, take an opposing view, and warn that oil prices have yet to peak.
"We see the market as unstable," Mr Ramirez said.
"US policy in the Middle East does not help stability in the petroleum
market. It creates instability."
Global oil prices have increased by 60% since the start of 2004
due to both supply and demand pressures, such as China's
fast growing economy.
(Agencies) | 
Updated: 2004-11-05 13:47