Oil prices ease as supply fears subside
October 11, 2004
Singapore - Oil prices dipped in Asian trade on Monday after Middle East oil ministers assured the world market supply of the commodity would meet demand, dealers said.
Prices however remained above $53 a barrel as labour unions in oil-producing Nigeria poised to mount a general strike which could disrupt supply flows.
In mid-morning Asian trade, light sweet crude oil for November delivery was trading at $53.17 a barrel, down from its close of $53.31 at the New York Mercantile Exchange on Friday.
With markets jittery ahead of the Nigerian strike, Gulf oil ministers sought to soothe frayed nerves when they came out with a pledge on Sunday to take measures to meet rising global demand.
"My message to the world (is) there's no shortage, there'll be no shortage, and we are willing to meet demand as it rises," Saudi Oil Minister Ali al-Noaimi told reporters in Abu Dhabi.
Noaimi said Saudi Arabia, the world's largest oil exporter, was producing at full capacity in an effort to reassure markets made nervous by the approach of winter in the northern hemisphere and uncertainty over Nigerian production.
"We are producing around 9.5" million barrels per day (mbpd), he said.
"We plan to maintain spare capacity of 1.5 to two mbpd for the foreseeable future."
His counterparts from Kuwait and the United Arab Emirates (UAE) also said the Organisation of Petroleum Exporting Countries (Opec) was doing its best to meet demand and calm prices. - AFP
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