LONDON, Nov 26: Oil prices breached $99 a barrel on Monday as the markets fretted over tight crude supplies globally, before sliding on profit-taking amid rumours that Opec may decide to increase output.
New York’s main contract, light sweet crude for January delivery, struck as high as $99.11, not far off its record high of $99.29.
At about 1600 GMT, the contract stood at $96.80 a barrel, down $1.38 from Friday’s close.
London’s Brent North Sea crude for January delivery hit an historic peak of $96.55 early on Monday. However it later stood at $95.10 a barrel, a loss of 66 cents.
“We believe the markets have yet to discount the outcome of the Opec meeting on December 5, where there will be immense -- and we believe ultimately successful pressure -- on the cartel to raise quotas,” MF Global analyst Ed Meir said.
Iran, a key member of the Organisation of Petroleum Exporting Countries, said over the weekend that the country could pump more if required.
“We believe there is enough oil in the market but if statistics and data show there is a need to produce more we are capable of meeting the demand,” Gholam Hossein Nozari told a news conference in Tehran.
When asked whether Iran agreed with a possible decision to increase Opec output, he said “we are studying it and will give our opinion.”
But he added that any hike “should be in final agreement with other members” of the 13-member cartel, whose oil ministers meet in Abu Dhabi next month.
Opec last decided to raise output in September when it agreed to provide an extra 500,000 barrels of crude a day to the market, which was made effective from November 1.—AFP
