Oil prices in fresh assault on $US100

November 27, 2007 07:30am – OIL prices topped $US99 a barrel overnight on worries over tight crude supplies, before sliding on profit-taking amid rumours that OPEC may boost output.

New York’s main contract, light sweet crude for January delivery, struck as high as $US99.11, not far off its record high of $US99.29.

The contract stood at $US96.80 a barrel, down $US1.38 from Saturday’s close.
London’s Brent North Sea crude for January delivery hit an historic peak of $US96.55 overnight. However it later stood at $US95.10 a barrel, a loss of 66 cents.

“We believe the markets have yet to discount the outcome of the OPEC meeting on December 5, where there will be immense – and we believe ultimately successful pressure – on the cartel to raise quotas,” MF Global analyst Ed Meir said.

Iran, a key member of OPEC, said over the weekend that the country could pump more if required.

“We believe there is enough oil in the market but if statistics and data show there is a need to produce more we are capable of meeting the demand,” Gholam Hossein Nozari said in Tehran.

When asked whether Iran agreed with a possible decision to increase OPEC output, he said “we are studying it and will give our opinion”.

News.com.au