1 July 2005, 15:35  Oil prices is flat

Oil prices were flat with movements exaggerated by thin volumes ahead of the long weekend in the US. At 11.31 am, August-dated Brent futures contracts were down 3 cents at 55.56 usd a barrel. US benchmark August-dated contracts were flat at 56.55 usd, in pre-market deals. US traders will finish at lunchtime today ahead of the July 4 public holiday on Monday -- a factor that is already affecting activity levels. Trading is very much in pre-holiday mode swinging from positive to negative territory in thin volumes higher ahead of the US holiday weekend, said Informa Global Markets analyst Peter Luxton. There is even more caution in the market after OPEC abandoned discussions late yesterday about raising its production output by a further 500,000 barrels a day, he noted. Oil prices have fallen from record highs set on Monday of 60.95 usd a barrel for benchmark US futures and 59.14 usd for Brent futures oil prices after a hardline conservative's presidential election victory in major oil producer Iran over the weekend rattled the market. Prices have since fallen as much as 4 usd a barrel this week after surprise stock builds in weekly US energy inventory data, and with many funds booking in profits with it being the end of the quarter. "OPEC are playing a good cop, bad cop routine with some members having said they were for a hike at the beginning of the week when prices were high, and then saying they were not towards the end when prices had dropped," Luxton noted. The underlying situation in the market has not changed, there is still caution about strong demand in the fourth quarter, he said, adding: "We are entering a phase of less certainty of renewed pushes up in the oil price, and with a reluctance to take them down," he added.

© 1999-2024 Forex EuroClub
All rights reserved