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25 September 2004
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Saturday
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09 Shaban 1425
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Oil steady as US set to release reserves
LONDON, Sept 24: World oil prices steadied on Friday after hitting record highs in London the day before, as the United States prepared to draw on its emergency reserves to ease supply strains caused by Hurricane Ivan.
The price of benchmark Brent North Sea crude oil for delivery in November dipped 13 cents to $45.00 a barrel in late deals in London, a day after reaching a new record of $45.75.
New York's main contract, light sweet crude for delivery in November, rose 12 cents to $48.58 a barrel in early trading. The US Energy Department said on Thursday it was preparing to release "a limited quantity" of crude oil from the US strategic petroleum reserve to ease shortages resulting from Hurricane Ivan.
"Oil markets have yet to react to the announcement with any significant price movements and it seems unlikely that the SPR release will be taken as a sign of government interference in the market," said Simon Wardell, senior energy analyst at World Markets Research Centre.
Prudential Bache trader Tony Machacek said the oil was only a limited amount but would help the refineries that have been affected by hurricanes to continue to operate at a time when refined product stocks are low.
Investec Securities oil analyst Bruce Evers described the release as a "very, very small quantity", with one company receiving 100,000-200,000 barrels and another between one and two million barrels. -AFP
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