|
Commodities / Oil
|
2000-03-01 23:56:00-05
|
Oil Moves to 9-year High
|
|
Increase comes even after news of production increases
|
World oil markets reached a 9-year high yesterday in spite of news that Saudi Arabia, Venezuela and Mexico are ready to propose that OPEC release more oil. US NYMEX crude oil prices for April delivery went to a nine-year peak, just above the critical mark of $30 per barrel, of $30.93 a barrel in after hours trading as figures showed that US gasoline supplies had decreased further. Benchmark Brent went up to $28.78 a barrel, within three cents of its all-time high, following the Gulf War. At a meeting to be held in London today, Saudi Arabia, Venezuela and Mexico, who led the arrangement to lower production a year ago, will propose an increase of 1.2 million barrels per day. Additionally, Mexico, a non-OPEC country, would agree to raise production by 90 thousand barrels per day. The goal of increased production is to ease benchmark US light crude to below $25 a barrel. Suspicions regarding possible OPEC reaction might also lead to the three nations proposing an immediate increase of half a million barrels per day, if the markets prove steadfast after the initial increase of 1.2 million bpd.
|
