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Oil prices slipped back towards the 75 usd per barrel mark in New York on Friday after reaching record highs midweek.
News from the United States that job growth there grew by just 92,000 in July, significantly lower than expected, prompted fears about the health of the economy there.
The price of a barrel of crude in New York dropped a significant 1.07 usd to 75.77, while in London the price of a barrel dipped 98 cents to 74.78.
If the drop in oil prices continues next week it will ease growing pressure on OPEC to increase production levels when it meets in Vienna on September 11.
This week, head of the International Energy Agency Claude Mandil reiterated calls for a hike in production.
He said that oil price levels will depend on the “reaction of producer companies” in coming weeks and warned of a high possibility of limited stocks.
However, there are indications that such action might not be needed on the part of OPEC. Refinery restarts are on the up, the US summer driving season is drawing to a close, and there are reports that this year’s hurricane season may be less severe than recent years.
However, prices will have to fall off dramatically if they are to reach OPEC’s publicly stated ideal of around 65 usd per barrel.
This is not out of the question as prices have been seesawing dramatically and have risen by about 10 usd in little over a month.
On Thursday, Qatar's oil minister Abdullah bin Hamad al-Attiyah said recent high prices were not caused by a lack of supply, but geopolitical problems and refinery bottlenecks.
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Posted on Aug-04-2007
