LONDON, Oct 24: Oil prices opened at their lowest level for more than two years Wednesday, as sentiment was weighed down by plentiful reserves and disagreement among producers about how to rein in supply.
A barrel of Brent North Sea crude for December delivery opened at $20.66 its lowest opening value since August 1999, after closing on Tuesday at $20.94. The New York light sweet crude November contract ended Tuesday at $21.85 a barrel, up nine cents.
Oil prices have fallen around 25 per cent since last month’s terrorist attacks on the United States, as investors expect demand to contract along with global economic growth.
Supply meanwhile remains abundant, and producers in the Organization of Petroleum Exporting Countries are desperately casting around for initiatives to help prices recover.
The extent of their problem was underscored overnight by US figures for crude stock levels, which according to the American Petroleum Institute grew 4.9 million barrels last week.
Opec wants other major exporters that are not part of its 11-nation cartel to join in with measures to stabilise oil prices, including freezing or cutting output if necessary.—AFP
