November 8, 2001	Thursday	Shaba’an 21, 1422

LONDON, Nov 7: Oil prices were stuck below $19 a barrel here on Wednesday, flirting with two year low points, as figures for US inventories confirmed that supply continues to outstrip demand.

A barrel of Brent North Sea crude for December delivery fell 11 cents to $18.96 a barrel. New York light sweet crude for December fell 10 cents on Tuesday to $19.92 a barrel.

Markets were responding to figures published by the American Petroleum Institute on Tuesday that showed that US crude reserves grew by 3.7 million barrels last week to 308.3 million barrels.

I’m not surprised to see the market lower this morning, said Prudential Bache analyst Tony Machacek, saying the figures showed a slightly larger than expected build in crude.

The more the market comes off the more pressure there is on Opec to make more substantial cuts, he said.

After a brief spike above $30 as the events of September 11, unfolded, oil prices have reeled lower, undermined by fears of a demand collapse as the global economy slows.

But the Organisation of Petroleum Exporting Countries (Opec) has prevaricated, scared of giving up market share and concerned that output cuts might prove politically and economically counterproductive in the current global climate.

Only recently did Opec officials start openly talking of a cut of one million barrels per day, which many now expect to be pushed through at a Vienna meeting next week.

Opec’s own basket price fell another 25 cents on Tuesday to $17.56 a barrel, according to the OPECNA news agency.—AFP