OPEC capacity pulls down oil prices

| May 16, 2005 | 0 Comments
OPEC capacity pulls down oil prices

Comments from OPEC on Sunday that it would continue production at near-capacity despite growing US inventories sent crude oil prices lower on Monday.

West Texas Intermediate on the New York Mercantile Exchange was down 74 cents to $47.92 per barrel while IPE Brent for June delivery fell 70 cents to $47.98 per barrel.

The comments to reporters came from Sheikh Ahmad al-Fahd al-Sabah, who is both president of OPEC and the Kuwaiti oil minister, at a workshop in Kuwait.

He said that OPEC will continue to pump more than 30 million barrels per day, the highest levels in a quarter of a century. He also said that a price of $40 per barrel is acceptable to OPEC. That is several dollars below current prices.

36 of 59 analysts surveyed by Bloomberg News said they believe crude oil prices will decline further this week.

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