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Crude oil prices stabilize above US$60

Oil prices stabilized yesterday after choppy trading on Monday when crude sank beneath US$60 per barrel on fading supply tensions, dealers said.

New York's main contract, light sweet crude for delivery in November, gained just US$0.02 to US$61.47 per barrel in electronic deals before the official opening of the US market. The contract had sunk to US$59.52 on Monday, the lowest level since March 8.

In London yesterday, Brent North Sea crude for November delivery gained US$0.06 to US$60.86 per barrel in electronic trading. It touched a low of US$59.32 on Monday -- also last seen on March 8.

Crude futures had bounced off the six-month lows on Monday to finish above US$60 as the market failed to hold below the key psychological barrier.

"The market seems to be quite oversold," said Tetsu Emori, chief commodities strategist with Mitsui Bussan Futures in Tokyo.

Dealers said the market was concerned that OPEC may begin to trim production if prices drop much further.

"I think that the market is watching out for any signs of what OPEC might do and what prices they may support," said Mark Pervan, an energy analyst for Daiwa Securities in Melbourne.

Monday's price lows came as tensions eased over the Iranian nuclear energy crisis, and BP said it would resume output at Prudhoe Bay, the biggest oil field in the US.
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