LONDON, July 30: World oil prices dipped on Monday as traders cashed in profits after New York crude had surged close to a record close before the weekend, traders said. In London, the price of Brent North Sea crude for September delivery slid 44 cents to $75.82 per barrel in electronic deals.
New York’s main futures contract, light sweet crude for delivery in September, fell 46 cents to $76.56 per barrel in pit trading.
“Crude oil futures were lower on Monday on profit taking following Friday's surge on the back of strong US GDP figures,” said Sucden analyst Michael Davies.
“We also consider that some of the optimism about the numbers may have been soured for the oil market by Friday’s weak close on Wall Street.”
The US economy expanded by 3.4pc in the second quarter, the Commerce Department said.
Davies added: “The numbers calmed recent fears about the troubled US sub-prime mortgage crisis spreading to other markets and worries that oil demand growth could suffer as a result.”
Oil prices had jumped on Friday, with New York crude closing at $77.02 as the US gross domestic product (GDP) data renewed concerns about supply in the face of anticipated demand from the United States.
Despite Monday’s modest losses, world oil prices are nonetheless trading more or less within $2 of intra-day peaks hit during the northern hemisphere summer last year.
“The near record-high prices have led to calls for Opec to hike output, but at the moment Opec remains unmoved by these pleas,” Davies added.
Iran, the second largest producer in the Organisation of Petroleum Exporting Countries after Saudi Arabia, on Sunday voiced opposition to any hike in output by the cartel.—AFP
