Oil jumps back above $41, near record

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Oil jumps back above $41, near record

Post by Apoptosis » Mon May 24, 2004 2:48 pm

Traders worry Saudi Arabia's pledge to boost output may not be enough to curtail spiraling prices.

NEW YORK (Reuters) - Oil prices rose to within a few cents of a new 21-year record Monday as traders and analysts doubted whether Saudi Arabia's weekend pledge to raise output unilaterally was enough to meet demand.

U.S. light crude futures settled $1.79 higher to $41.72 after climbing as high as $41.82 at midday, three cents from the contract's record reached last Monday. NYMEX crude oil futures began trading in 1983.

In London, internationally traded Brent crude was up $1.66 at $38.17 a barrel.

"There is skepticism as to if what the Saudis can do will be enough in the context of inventory demand," said Jan Stuart, Fimat USA analyst.

Saudi Arabia's Oil Minister Ali al-Naimi confirmed over the weekend that Riyadh was boosting output to 9.1 million barrels per day (bpd) to meet demand next month. That would lift Saudi production by 10 percent from an estimated 8.3 million bpd in April.
Great now skepticism is increasing prices :( Looks like we will break the 21-year record!


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