Oil down in Asia

I / Singapore February 25, 2011, 12:46 IST

Crude prices fell in Asian trade today as supply fears eased with oil cartel OPEC promising to boost output to make up for any production loss in revolt-hit Libya, analysts said.   

New York's main contract, light sweet crude for April delivery, dipped 40 cents to $96.88 per barrel. Brent North Sea crude for delivery in April was down 47 cents to $110.89.  

"The fact that Organisation of the Petroleum Exporting Countries (OPEC) and Saudi Arabia were willing to increase oil production, has lowered oil prices," said Ong Yi Ling, investment analyst for Phillip Futures in Singapore.  

 

Saudi Oil Minister Ali al-Naimi said on Tuesday OPEC was prepared to meet any shortage of supplies due to unrest in the Middle East and that its members had sufficient spare capacity to do so. 

The OPEC kingpin yesterday also reassured oil consumers that the nation would boost production as well to make up for any production lost in Libya, according to oil specialist Platts.   

Investors were also monitoring the situation in neighbouring Bahrain, where thousands of protesters were staging a march in Manama and pressing an 11-day uprising against the monarchy, Ong added.

"While Bahrain is not a major oil producer, it has close ties to Saudi Arabia, so it is important to the strategic balance of power in the Middle East," Ong said.