Singapore: World oil prices fell on 17 September in Asian trade, easing back from record highs reached last week, dealers said.
At 0851 IST, New York’s main futures contract, light sweet crude for delivery in October, was 52 cents lower at $78.58 per barrel from $79.10 per barrel in late US trades on Friday (13 September) when the contract moved briefly to a new high at $ 80.36.
On Thursday (13 September) it reached a record $80.20.
“Any attempt to consolidate over $80 was meeting a lot of resistance,” said Dave Ernsberger, Asia director of Platts.
Abdalla Salem El-Badri, chief of the Organisation of the Petroleum Exporting Countries (OPEC), said on Friday (13 September) that $80 a barrel for oil did not reflect the current demand and supply situation.
“I don’t think $80 (per barrel) will last,” El-Badri told journalists in Vienna. “The fundamentals do not support the price.”
OPEC decided last Tuesday (11 September) to pump an extra 500,000 barrels of oil per day from November, and Ernsberger said the market was now moving towards $ 76 or 77 a barrel.
“It looks like it’s going to test that as a support level now,” he said.
Prices began easing on Friday (13 September) as the impact faded from Humberto, which hit the Texas coast at hurricane strength and then weakened, but still caused significant damage to the oil-producing area.
News that US crude reserves had dived lower also helped boost crude prices to new heights.