Oil rumor of the day: March 20, 1998
Oil Prices Slip as Market
Consolidates Recent Gains
An INTERACTIVE JOURNAL News Roundup
Crude oil and petroleum-products futures were slightly lower in late
morning trading Friday on the New York Mercantile Exchange, as the
market consolidated gains made earlier in the week.
However, the potential for a strong rise wasn't ruled out amid reports
oil-price talks might take place over the weekend.
There was some speculation in the market that officials from oil-producing
nations, both members of the Organization of Petroleum Exporting
Countries and non-OPEC producers, will meet this weekend to discuss
falling crude oil prices. A meeting could lead to some action to reduce oil
production.
Norway's oil and energy ministry said Friday its minister Marit Arnstad
and Mexico's counterpart Louis Tellez met Thursday in Oslo to discuss
recent and possible future developments in the oil market.
Venezuelan energy minister Erwin Arrieta has joined his country's
president Rafael Caldera on a state visit to Europe and will remain there
until next week, according to a senior Petroleos De Venezuela SA official.
"Some people are speculating that there may be some sort of meeting in
Europe this weekend. This lends credence to some of the rumors heard
earlier in the week," said Tom Bentz, an energy analyst with Cresvale
International.
Earlier in the week, rumors that OPEC and non-OPEC producers would
meet this weekend in Riyadh helped send the April crude oil contract up
$1.13 a barrel.
News that Dan Etete, Nigeria's oil minister, will attend OPEC's ministerial
monitoring subcommittee meeting March 30 in Vienna also was seen as
supportive. Venezuela said earlier this week that Mr. Arrieta also will
attend. The more ministers in attendance, the greater chance that the
meeting could evolve into an emergency ministerial meeting, where official
consideration can be given to production cuts, analysts said.
April crude oil fell 11 cents to $14.20 a barrel. April crude expires at the
end of Friday's session. May crude oil dropped 10 cents to $14.50 a
barrel.
Among oil products, April unleaded gasoline shed 0.30 cent to 48.25
cents a gallon, while April heating oil lost 0.30 cent to 40.45 cents a
gallon. April natural gas rose 2 cents to $2.280 per million BTUs. |
