Oil eases a bit from $80 highs as markets look at the long-term
13 Sep 2007
Mumbai: Oil prices edged lower from the previous day''s all-time high above $80, as investors stayed locked into the market for the long haul, amidst rising output and fears of slowing global growth.
Oil futures had hit a record high on Wednesday following reports of lower US inventories and hefty demand. Crude for October delivery jumped to $80.18 a barrel in New York before closing at $79.91, 2.2 per cent above Tuesday''s close.
The US Energy Information Administration said crude inventories fell by 7.1 million barrels to 322.6million in the week ended September 7. Gasoline stocks fell by 700,000 barrels even as demand remained 0.9 per cent higher than a year ago. Distillate stocks climbed 1.8 million barrels.
US
crude traded six cents lower at $79.85 a barrel by 7:25 a.m. EDT, after hitting
a record of $80.18 on Wednesday. London Brent crude shed 22 cents to $77.46.
The Organization of the Petroleum Exporting Countries (OPEC), meanwhile, agreed
to increase supply a bit to soothe consumer concern that soaring oil costs may
slow economic growth.
But analysts said OPEC''s pact to raise output by 500,000 barrels per day (bpd) from November 1 was not enough to reverse a rally that has lifted prices by 31 per cent this year.
Though
quadruple the levels of 2002, the price of oil - when adjusted for inflation -
is below the $90-a-barrel peaks of the Iranian Revolution in 1979 and the start
of the Iran-Iraq War the following year.
