ADVERTISEMENT

Oil steady above $110; China supports

World

Oil steadied above $110 a barrel as firm Chinese demand and OPEC's stance on keeping its supplies unchanged lent support.

Prices gained even though the International Energy Agency on Friday cut its forecast of world oil demand growth due to the economic slowdown in the United States and other industrialized countries.

US light crude for May delivery was trading 49 cents up at $110.60 a barrel.

US crude hit a record high of $112.21 a barrel on Wednesday, after the US government data showed a surprise drop in crude oil and fuel supplies. It has gained about 14% this year.

London Brent crude gained 72 cents to $108.80.

“It is a continuation of the price volatility and there is a lack of initiative on OPEC to bring on more oil,” said Gerard Burg, a resource analyst from National Bank of Australia.

March crude oil imports into China leapt by a quarter from a year ago to a record high of 17.3 million tons.

On Thursday, Ali al-Naimi, oil minister for top OPEC producer Saudi Arabia shrugged off calls from consumer nations to boost production, saying that supplies were adequate and record prices were not due to a lack of oil.

Saudi Arabia's customers on Friday confirmed Saudi May supply volumes to Asia and Europe would be unchanged from April, while one customer said it would get a little more oil.

The cartel will attend an industry gathering in Rome later this month, but is not expected to call a meeting there to review output policy.

The IEA, adviser to industrialized countries, said on Friday world oil demand would rise less than expected in 2008 because of slower economic growth.

Global consumption will rise by 1.27 million barrels per day (bpd), 460,000 bpd less than the previous forecast, the organization said in its monthly Oil Market Report. (Reuters)

ADVERTISEMENT

Fiscal, monetary policy partnership needed to rein in CPI - ... Analysis

Fiscal, monetary policy partnership needed to rein in CPI - ...

Parl't votes to phase out savings coops integration framewor... Parliament

Parl't votes to phase out savings coops integration framewor...

Roche Szolgáltató appoints P&C business partner lead Appointments

Roche Szolgáltató appoints P&C business partner lead

FAO–Food Bank convoy delivers food to those in need City

FAO–Food Bank convoy delivers food to those in need

SUPPORT THE BUDAPEST BUSINESS JOURNAL

Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.