Oil prices inched lower on Friday from a strong rally the previous day as the market awaited the outcome of this weekend’s OPEC and G20 meetings.
New York’s main futures contract, light sweet crude for delivery in April, fell US$0.78 to close at US$46.25 a barrel ahead of today’s OPEC meeting in Vienna.
In London, Brent North Sea crude for April dropped US$0.16 to settle at US$44.93 a barrel.
The New York contract had traded slightly higher throughout most of the session before profit-taking set in ahead of the close, a day after a powerful rally of US$4.70, or more than 10 percent.
Prices on Friday for the most part treaded water, reflecting the mixed speculation on whether OPEC will cut production further.
The market also was focused on a G20 finance chiefs meeting near London yesterday aimed at tackling the global economic crisis and financial regulatory reform.
“Two important conferences are occurring simultaneously: a meeting of OPEC officials trying to fix production targets and the G20 finance ministers who are attempting to coordinate global economic policy. We expect both to produce nothing more than window dressing,” Mike Fitzpatrick at MF Global said.
OPEC, which pumps 40 percent of world crude, agreed late last year on cuts to reduce output by 4.2 million barrels per day.
OPEC on Friday expressed its fears about low oil prices, which have tumbled from record heights above US$147 a barrel last July as a vicious global economic downturn slams demand for energy.
Despite its output cuts, oil prices could continue to fall because of the global economic slump and the erosion of demand, OPEC warned on Friday.
“With continued economic deterioration and demand erosion as well as the impending low demand season, there is likelihood of renewed pressure on prices,” the cartel said in its latest monthly report.
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