- Title: VARIOUS: OIL PRICES HIT ALL-TIME HIGH.
- Date: 4th April 2005
- Summary: (W3) UNIDENTIFIED LOCATION (FILE) (REUTERS) 1. GV/TRACK: OIL REFINERY (2 SHOTS) 0.06 (W3) GRAPHICS (APRIL 4, 2005) (REUTERS) 2. CHART OF U.S. LIGHT CRUDE PEAKING ON MONDAY 0.14 (W3) LONDON, UNITED KINGDOM (APRIL 4, 2005) (REUTERS) 3. (SOUNDBITE) (English) CHRIS GROVE, PARTNER, BDO STOY HAYWARD BUSINESS CONSULTANCY, SAYING: "We are perceiving the general trend towards the $50-55 dollar a barrel price. Certainly, there was a peak on Friday, and my understanding is that the price has gone up again today. That's understandable in the current market but we are recognizing a long-term stabilisation probably coming off the back of a slowdown in global growth of the global economies which is actually getting to bring the price down." 0.40 (W3) VIENNA, AUSTRIA (FILE) (REUTERS) 4. GV/CU: EXTERIOR OF OPEC HEADQUARTERS, CLOSE OF SIGN (2 SHOTS) 0.50 (W3) UNIDENTIFIED LOCATION, KUWAIT (FILE) (REUTERS) 5. GV: OIL REFINERY (4 SHOTS) 1.10 Initials Script is copyright Reuters Limited. All rights reserved
- Embargoed: 19th April 2005 13:00
- Keywords:
- Location: LONDON, UNITED KINGDOM/ VIENNA, AUSTRIA/ VARIOUS UNIDENTIFIED LOCATIONS
- City:
- Country: Austria England United Kingdom Kuwait
- Reuters ID: LVAEON72D9EE5Y8PLOV2ML9947TP
- Story Text: Oil price hits new all-time peaks.
Oil prices raced to all-time peaks on Monday (April
4, 2005), climbing above $58 a barrel, while OPEC producers said
they had begun discussing a second output rise to try to
quell the market's rally.
U.S. light crude for May delivery on the New York
Mercantile Exchange hit a record $58.18 a barrel, up 91
cents on the day. London's Brent crude traded $1.14 higher
at $57.65.
Prices have surged since a forecast last week by
Goldman Sachs bank that prices could spike above $100 as
global demand growth strains supply capacity.
Analyst Chris Grove with BDO Stoy Hayward business
consultancy said the current peaks go in line with the
present market situation but predicts a slowdown in price
growth in the coming months.
"We are perceiving the general trend towards the $50-55
dollar a barrel price. Certainly, there was a peak on
Friday, and my understanding is that the price has gone up
again today. That's understandable in the current market
but we are recognizing a long-term stabilisation probably
coming off the back of a slowdown in global growth of the
global economies which is actually getting to bring the
price down," said Grove.
President of the Organization of the Petroleum
Exporting Countries (OPEC) Sheikh Ahmad al-Fahd al-Sabah
said on Monday cartel oil ministers had begun telephone
consultations on possibly increasing production by a
further 500,000 barrels per day to cool prices.
OPEC raised output limits by 500,000 bpd to 27.5 million
bpd in mid-March and left room for a second rise before a
June ministerial meeting if prices failed to ease below $55.
Apart from Goldman's forecast of a very sharp spike
higher, the European Commission on Monday said it had
raised its 2005 price forecast to $50.9 a barrel for Brent,
up from an earlier forecast of $45.1.
Nigerian Presidential Adviser on Petroleum Edmund Daukoru said
on Sunday (April 3) the increase could happen
within two weeks if prices stayed above $55 for at least
the next 10 to 14 days.
An OPEC delegate said on Monday the group's 10 members
under formal output limits, excluding Iraq, would pump 28.1
million bpd in April, which is about 400,000 bpd above
estimated March production and 600,000 bpd higher than the
current ceiling.
U.S. oil prices have surged by more than 30 percent
this year, with big-money speculative funds buying heavily
on signs that robust demand growth in Asia's emerging
economies and the United States would strain world supply.
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