Oil Prices Extend Losses in Asia Trading

SINGAPORE (AP) — Oil prices fell further Tuesday on growing expectations that OPEC ministers will agree to raise crude production during a meeting next week.

The sharp sell-off on Wall Street overnight also contributed to the decline in oil futures.

Crude’s ascendancy has been stymied in recent weeks in part by conflicting signals from members of the Organization of Petroleum Exporting Countries about their willingness to add supplies to the global oil market.
Iranian Oil Minister Gholam Hossein Nozari appeared to remove one of the obstacles to increased OPEC supplies over the weekend when he said his country is willing to lift production if needed.

“If statistics and data indicate there is a need to produce more oil, we have the capacity to increase the output and supply more oil for the market,” Nozari told reporters.

Many traders believe Saudi Arabia is pushing for production increases against opposition from Iran, Venezuela and other OPEC members. CNBC reported Monday that Saudi Arabia has already boosted its oil output. Analysts said that confirms reports last week by two research firms that found OPEC production is rising faster than expected.

Light, sweet crude for January delivery dropped 67 cents to $97.03 a barrel in Asian electronic trading on the New York Mercantile Exchange by midday in Singapore. The contract fell 48 cents to settle at $97.70 Monday.

Oil reached a trading record of $99.29 last week and is within the range of inflation-adjusted highs set in early 1980. Depending on how the adjustment is calculated, $38 a barrel then would be worth $96 to $103 or more today.

Associated Press