Crude Lower As Mideast Producers Pledge Supplies |
| Wall Street Journal - Feb 28, 2011 |
Crude futures were lower Monday as oil producers Saudi Arabia and Kuwait appeared ready to make up for crude supplies lost due to the unrest in Libya.
Light, sweet crude for April delivery recently traded 56 cents, or 0.6%, lower at $97.32 a barrel on the New York Mercantile Exchange. Brent crude on the ICE futures exchange traded 7 cents lower at $112.07 a barrel.
Libyan opposition groups have taken control of most of the country, though the capital, Tripoli, remains in the hands of forces loyal to Moammar Gadhafi. While the unrest has curtailed more than half of Libya's 1.6 million barrels a day of oil output, Saudi Arabia has increased its crude production to offset the supplies lost because of the crisis.
The kingdom is producing 9 million barrels a day, an increase of between 500,000 and 600,000 barrels a day, Saudi oil officials said.
A top official at Kuwait Petroleum Corp. said the Organization of Petroleum Exporting Countries member could also raise output if needed.
"Saudi Arabia appears to be cranking up supplies to fill the gap, but it is unclear at this point whether it will fully offset the supply loss," said JP Morgan analysts in a client note.
Read Full Article from Wall Street Journal
- Posted: 2011-02-28 09:52:30
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