أبوعبدالحكيم
18-05-2002, Sat 7:02 PM
18.05.2002
9:00 am
LONDON - Oil prices weakened on Friday after Russia said it would abandon a pact with the Opec cartel to restrict exports intended to support the market.
The decision by the world's second largest exporter opens the way for further hikes in Russian supplies even while the Middle East-dominated Opec maintains tough curbs on output.
International benchmark Brent crude oil fell well below the US$26 a barrel mark shortly after the news, but rallied in late trade to settle only two cents weaker at US$26.36 a barrel in London.
US crude futures rose by 22 cents to US$28.17.
Russian Prime Minister Mikhail Kasyanov said after a meeting with local oil companies that the global market was rebalancing after last year's recession and the curbs would be gradually lifted over the next two months.
Russia, which is not a member of the Organisation of the Petroleum Exporting Countries, had agreed to co-operate with Opec cuts from January.
Its cooperation was a key condition for Opec making a huge production cut, which ministers of the Middle East dominated group have said they expect to keep at least until September.
"The market thinks the Russian decision is significant, but we didn't see a huge commitment by Russia anyway," said Lawrence Eagles of brokers GNI Research.
Despite Russia's formal promise to cut exports, export data actually showed Moscow had already abandoned its pledge by sending more oil through former Soviet republics.
An Opec official said the Russian decision was expected, and hoped that other non-Opec allies Mexico and Norway would continue to restrict exports after June in concert with Opec.
Opec ministers meet on June 26 in Vienna to review production policy for the third quarter.
Helping to bring the heat out of oil prices, Iraq has ramped up crude exports after a month-long stoppage in protest at Israeli incursions into Palestinian areas of the West Bank.
Baghdad this week also accepted a new phase of the UN oil-for-food programme, relieving concerns of a possible halt in protest at the decade-old sanctions regime.
Hints that Baghdad may be willing to allow weapons inspectors back to Iraq after a three-year hiatus, also has calmed traders' fears of a US attack on Iraq.
- REUTERS
9:00 am
LONDON - Oil prices weakened on Friday after Russia said it would abandon a pact with the Opec cartel to restrict exports intended to support the market.
The decision by the world's second largest exporter opens the way for further hikes in Russian supplies even while the Middle East-dominated Opec maintains tough curbs on output.
International benchmark Brent crude oil fell well below the US$26 a barrel mark shortly after the news, but rallied in late trade to settle only two cents weaker at US$26.36 a barrel in London.
US crude futures rose by 22 cents to US$28.17.
Russian Prime Minister Mikhail Kasyanov said after a meeting with local oil companies that the global market was rebalancing after last year's recession and the curbs would be gradually lifted over the next two months.
Russia, which is not a member of the Organisation of the Petroleum Exporting Countries, had agreed to co-operate with Opec cuts from January.
Its cooperation was a key condition for Opec making a huge production cut, which ministers of the Middle East dominated group have said they expect to keep at least until September.
"The market thinks the Russian decision is significant, but we didn't see a huge commitment by Russia anyway," said Lawrence Eagles of brokers GNI Research.
Despite Russia's formal promise to cut exports, export data actually showed Moscow had already abandoned its pledge by sending more oil through former Soviet republics.
An Opec official said the Russian decision was expected, and hoped that other non-Opec allies Mexico and Norway would continue to restrict exports after June in concert with Opec.
Opec ministers meet on June 26 in Vienna to review production policy for the third quarter.
Helping to bring the heat out of oil prices, Iraq has ramped up crude exports after a month-long stoppage in protest at Israeli incursions into Palestinian areas of the West Bank.
Baghdad this week also accepted a new phase of the UN oil-for-food programme, relieving concerns of a possible halt in protest at the decade-old sanctions regime.
Hints that Baghdad may be willing to allow weapons inspectors back to Iraq after a three-year hiatus, also has calmed traders' fears of a US attack on Iraq.
- REUTERS