Oil prices slip back from $80 mark
Thursday, 22 October 2009 17:42World oil prices slid this evening as traders took profits, after prices had soared overnight on the back of sliding US energy reserves and the weak dollar.
US crude fell 90 cents to $80.47 a barrel, having touched a one-year high of $82 on Wednesday. Brent crude dipped 82 cents to $78.87, after reaching a high of $80.26 the previous day.
Both contracts had risen in value on Wednesday, lifted by a drop in US energy stockpiles, which was seen as a sign of improved demand in the world's biggest energy user.
Data released by the US Department of Energy showed that petrol reserves sank by 2.3 million barrels in the week to October 16. That was more than the 800,000 barrel drop expected by most analysts.
Oil has been rising steadily in recent days, fuelled by a weak US currency, which makes dollar-priced crude cheaper for holders of stronger foreign currencies.
But there are doubts on whether oil prices can be sustained at levels above $80 given the fragile state of the global economy, despite some signs of a recovery.
Meanwhile in London, OPEC secretary-general Abdalla Salem El-Badri said that the cartel would consider ramping up crude oil production at its next meeting in December if key conditions were met.
The cartel 'will not hesitate to increase its production in December', he told reporters, adding the decision was dependent on higher oil prices, improving economic growth and no floating storage of crude. OPEC members pump 40% of the world's crude oil supplies.
