Oil prices fall as Saudi minister calls for more OPEC output

RIYADH Oil prices fell on Monday after Ali Naimi, Saudi Arabia’s oil minister, urged OPEC to raise its production ceiling by 1.5 million barrels a day when it meets on June 3.
RIYADH Oil prices fell on Monday after Ali Naimi, Saudi Arabia’s oil minister, urged OPEC to raise its production ceiling by 1.5 million barrels a day when it meets on June 3.
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Naimi said demand for oil is expected to increase in the second half of this year because of greater consumption from Asian countries.
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“We do not want to see oil prices at the level that they negatively affect the growth of the international economy or the demand for oil,” the minister said.
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Naimi’s statement overshadowed the news that saboteurs had struck a pipeline linking Iraq’s southern fields to its export terminals in the Gulf, sharply curtailing the country’s exports.
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Saboteurs on Sunday hit one of several “major” pipelines linking a storage facility at Al Faw on the Shatt al-Arab waterway with Basra and Khor al-Amaya terminals, from which Iraq exports about 90 percent of its oil, said Norman Szydloski, a U.S. adviser to the Iraqi Oil Ministry.
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“The damage will take about two days to repair,” Szydloski said by telephone from Baghdad.
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Iraq was exporting about 1.6 million barrels a day through the terminals before the attack, Szydloski said.
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In London afternoon trading, Brent crude for June delivery fell $1.50, or 4.1 percent, to $35.50.
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New York oil prices on Friday hit $40 for the first time in the 13 years since the 1990-1991 Gulf crisis, which was caused by Iraq’s invasion of Kuwait.
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Riyadh already appears to have backing from the United Arab Emirates. Kuwait, which was opposed production cuts earlier this year, is also likely to support the plan. Iran said on Saturday that although it did not want to pander to U.S. demands on the Organization of Petroleum Exporting Countries to pump more, it would not oppose an increase should such a move be proposed.
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(AP, Reuters, Bloomberg)
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Trichet voices confidence
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Soaring commodity prices and rising bond yields are not threatening global recovery right now, the European Central Bank’s president, Jean-Claude Trichet, said on Monday, Reuters reported from Basel.
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After meeting with central bankers from the wealthiest nations and major developing countries, Trichet, the Group of 10 chairman, said policy makers were vigilant though optimistic that the world economic recovery is broadening.
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“Steady growth at this stage is not hampered by a rise in commodity prices and oil prices even if we have to remain vigilant in this respect,” Trichet said at a news conference held at the Bank for International Settlements. RIYADH Oil prices fell on Monday after Ali Naimi, Saudi Arabia’s oil minister, urged OPEC to raise its production ceiling by 1.5 million barrels a day when it meets on June 3.
.
Naimi said demand for oil is expected to increase in the second half of this year because of greater consumption from Asian countries.
.
“We do not want to see oil prices at the level that they negatively affect the growth of the international economy or the demand for oil,” the minister said.
.
Naimi’s statement overshadowed the news that saboteurs had struck a pipeline linking Iraq’s southern fields to its export terminals in the Gulf, sharply curtailing the country’s exports.
.
Saboteurs on Sunday hit one of several “major” pipelines linking a storage facility at Al Faw on the Shatt al-Arab waterway with Basra and Khor al-Amaya terminals, from which Iraq exports about 90 percent of its oil, said Norman Szydloski, a U.S. adviser to the Iraqi Oil Ministry.
.
“The damage will take about two days to repair,” Szydloski said by telephone from Baghdad.
.
Iraq was exporting about 1.6 million barrels a day through the terminals before the attack, Szydloski said.
.
In London afternoon trading, Brent crude for June delivery fell $1.50, or 4.1 percent, to $35.50.
.
New York oil prices on Friday hit $40 for the first time in the 13 years since the 1990-1991 Gulf crisis, which was caused by Iraq’s invasion of Kuwait.
.
Riyadh already appears to have backing from the United Arab Emirates. Kuwait, which was opposed production cuts earlier this year, is also likely to support the plan. Iran said on Saturday that although it did not want to pander to U.S. demands on the Organization of Petroleum Exporting Countries to pump more, it would not oppose an increase should such a move be proposed.
.
(AP, Reuters, Bloomberg)
.
Trichet voices confidence
.
Soaring commodity prices and rising bond yields are not threatening global recovery right now, the European Central Bank’s president, Jean-Claude Trichet, said on Monday, Reuters reported from Basel.
.
After meeting with central bankers from the wealthiest nations and major developing countries, Trichet, the Group of 10 chairman, said policy makers were vigilant though optimistic that the world economic recovery is broadening.
.
“Steady growth at this stage is not hampered by a rise in commodity prices and oil prices even if we have to remain vigilant in this respect,” Trichet said at a news conference held at the Bank for International Settlements. RIYADH Oil prices fell on Monday after Ali Naimi, Saudi Arabia’s oil minister, urged OPEC to raise its production ceiling by 1.5 million barrels a day when it meets on June 3.
.
Naimi said demand for oil is expected to increase in the second half of this year because of greater consumption from Asian countries.
.
“We do not want to see oil prices at the level that they negatively affect the growth of the international economy or the demand for oil,” the minister said.
.
Naimi’s statement overshadowed the news that saboteurs had struck a pipeline linking Iraq’s southern fields to its export terminals in the Gulf, sharply curtailing the country’s exports.
.
Saboteurs on Sunday hit one of several “major” pipelines linking a storage facility at Al Faw on the Shatt al-Arab waterway with Basra and Khor al-Amaya terminals, from which Iraq exports about 90 percent of its oil, said Norman Szydloski, a U.S. adviser to the Iraqi Oil Ministry.
.
“The damage will take about two days to repair,” Szydloski said by telephone from Baghdad.
.
Iraq was exporting about 1.6 million barrels a day through the terminals before the attack, Szydloski said.
.
In London afternoon trading, Brent crude for June delivery fell $1.50, or 4.1 percent, to $35.50.
.
New York oil prices on Friday hit $40 for the first time in the 13 years since the 1990-1991 Gulf crisis, which was caused by Iraq’s invasion of Kuwait.
.
Riyadh already appears to have backing from the United Arab Emirates. Kuwait, which was opposed production cuts earlier this year, is also likely to support the plan. Iran said on Saturday that although it did not want to pander to U.S. demands on the Organization of Petroleum Exporting Countries to pump more, it would not oppose an increase should such a move be proposed.

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