Oil Prices Drop As OPEC Speaks Of Production Increase
Talk of increased production from OPEC has had a roller-coaster effect on oil prices recently. Yesterday, when talk of the increase was introduced, oil prices increased. Today, however, has seen the opposite occur.
According to a report by ABC News, oil prices dropped today after OPEC again spoke of increasing production to satisfy a ravenous market.
U.S. crude settled down $1.43 to $56.03 a barrel on the New York Mercantile Exchange, sliding further from the all-time peak of $57.60 struck last Thursday. London’s Brent crude settled down $1.06 at $54.59 on the International Petroleum Exchange.
OPEC President Sheik Ahmad al-Fahd al-Sabah said on Tuesday producers would not need to decide for up to two weeks whether to increase production quotas further, after last week’s output hike agreement.
Because of increased petroleum use, since the end of 2004, gas prices have increased 32%. ABC also revealed, “former Saudi Arabian Oil Minister Sheik Ahmed Zaki Yamani said prices were unlikely to come down soon.”
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