Prices at $31-32 a barrel

MARKET REVIEW / DOMESTIC: ENERGY

Crude oil prices softened to around $ 31-32 a barrel last week after touching a high of $ 35 a barrel in March. The slide in oil prices is being attributed largely to a week summer demand and a comfortable inventory position of the USA "" world's largest consumer of petroleum products.

The decision of the Organisation of Petroleum Exporting Countries (OPEC) to cut output by a million barrels per day this month notwithstanding, the market is certain that Iran and the United Arab Emirates would supply extra barrels above allotted volumes to term customers in Asia in April or May.

Supply from Iraq is also rising, despite recent unrest there, with the country issuing its second sell tender for northern Kirkuk crude production this year.

The international benchmark Brent (dated) crude, which was hovering at $32.10 a barrel on March 31, moved down to $30.92 a barrel on April 2, to be quoted at $31.50 a barrel on April 6.

Jet fuel (Singapore), which was being quoted at $38.03 a barrel on March 31, moved down to $37.03 a barrel on April 2, and touched $37.50 a barrel on April 6.

Prices of gas oil (Singapore) with 0.5 per cent sulphur, which were ruling at $37.95 a barrel on March 31, moved up to $37.20 a barrel on April 2, and touched $37 a barrel on April 6.

Naphtha (Singapore), which was being quoted at $37.73 a barrel on March 31, touched $35.28 a barrel on April 2, and was quoted at $34.65 a barrel on April 6.

Prices of unleaded petrol (fob Singapore), which were ruling at $44.05 a barrel on March 31, moved down to $43 a barrel on April 2, and touched $41.75 a barrel on April 6.