Industry and Energy

Home page

Industry and Energy

OPEC can increase oil production

25 January 2011 11:08 (UTC +04:00)

Baku - APA-Economics. Yesterday, crude oil futures declined in the domestic market as much as 2% on the back of tracking weak cues from the global market, Oneindia reported.

March contract dropped for a sixth day in New York Mercantile Exchange (NYMEX) after OPEC member said crude oil supply may increase to meet the global demand, as demand for crude rises with recovery of global economy from the last global financial crisis.

Saudi Arabia’s oil Minister Ali-al-Naimi said Yesterday OPEC members may increase oil production in this year in order to fulfill the global demand with recovery of global economy. World oil demand is expected to rise as much as 1.8 million barrels a day, or 2%, in 2011, and oil prices would be stable, he added.

"The market focused on comments from Saudi Arabia’s oil minister Ali al-Naimi, and found it mostly bearish," Mark Pervan, head of commodity research at Australia & New Zealand Banking Group Ltd., said in a note yesterday.

At Multi Commodity Exchange (MCX), crude oil future for February contract closed on Monday at Rs. 4,016.00 per barrel, down by 2.02%, after opening at Rs. 4,097.00 against the previous close price of Rs. 4,099.00. It touched the intra-day low of Rs. 4,008.00 per barrel with a business volume of 140,290 lots. While, crude future for March contract closed at Rs. 4,112.00 per barrel, down by 1.69%, after opening at Rs. 4,181.00 against the previous close price of Rs. 4,183.00. It touched the intra-day low of Rs. 4,105.00 with a business volume of 10,625 lots.

Moreover, crude future for March contract closed yesterday on New York Mercabtile Exchange (NYMEX) at $87.87 per barrel, down by $1.24, after opening at $89.26 against the previous close price of $89.11. It touched the low of $87.27 per barrel with a business volume of 337,713 lots.

Meanwhile, industrial orders in the euro area rose less than expected figure to 2.1% in % in November from 1.4% in October, while 2.3% rise was expected. Below than expected industrial orders dampened the demand outlook for crude oil in euro zone. Appreciation of US dollar against its major counterparts also putted a downward pressure in crude futures prices today.