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OPEC concerns on high oil prices were eased on Monday as the value of the barrel fell back after rising last week.
By lunchtime on Monday, the price of a barrel of crude in London was down 19 cents to 77.45 USD per barrel, while the price of a barrel in New York was down 42 cents to 75.37.
The dip in prices comes on the back of an announcement from Chevron that its refinery in El Segundo, California will recommence production after closing in June. Renewed access to its 270,000-bpd capacity will ease concerns following a number of refinery closures in the US this year.
Comments made by Mohammed Al Hamli are also thought to have contributed to the dip in oil prices. The OPEC president expressed the organization’s “concern” about rising prices.
He also revealed OPEC’s aim of keeping oil prices somewhere between 60-65 USD per barrel.
This will come as a relief for consumers as prices currently stand at over 75 USD per barrel on both sides of the Atlantic as oil prices have gained over 5 USD since the beginning of July.
Despite yesterday’s statement, OPEC is refusing to increase output despite claims that supply is falling short of ever-increasing demand.
Meanwhile, this year’s closures of refineries in the US, uncertainty over Nigeria’s ability to provide guaranteed oil supplies and the ongoing situation in Iraq mean it is unlikely that the current shortfall will be addressed without OPEC’s intervention.
23:19
Posted on Jul-30-2007
