Fall of US65c in crude oil

Press, 2 July 1986, Page 36

Fall of US65c in crude oil

NZPA-Reuter New York Crude oil prices fell US6Sc a barrel on Monday, to 1U512.75, and some analysts said prices could hit SUSIO after Organisation of Petroleum Exporting Countries oil ministers failed to agree on production cuts. West Texas Intermediate, the benchmark UJ. crude oil, was quoted at $1)512.75 a barrel on the spot market, while in futures trading the August contract closed at $1)512.78 a barrel, down US62C. Petrol prices were also sharply lower with leaded petrol for July down its allowed US2c limit in the futures market, closing at U539.59C a gallon. “The market had not built up large expectations about O.P.E.C. and this was justified by the (OJ*JE.C). meeting,” said Mr Charles Max-

well, an oil analyst with the brokerage firm C. J. Lawrence. “Prices will continue to soften from this level and may fall Into the 16 dollar to 11 dollar a barrel range before they rebound later this year,” he said. O.P.E.C. ministers adjourned their meeting in Brioni, Yugoslavia, without reaching a firm agreement on output cuts. A final communique said the talks would resume in Geneva on July 28 after ministers consulted their governments on the question of national production quotas. Analysts said the oil price rise from under SUSI 6 in April to about SI)SI3 now had led to the latest oversupply as oil producers increased production to take advantage of the rising prices.