LONDON, Dec 11: Crude oil Eries fell this week as the mar-et braced for a resumption of exports from Iraq, which was thought likely to win a fresh extension to its oil-for-food deal brokered with the United Nations. says AFP.
OIL: decline. Oil prices fell as dealers braced for a resumption of exports from Iraq, as the United Nations prepared to meet for discussions on a possible lifting of trade sanctions against Baghdad.
Brent North Sea crude oil was being traded at 24.78 dollars a barrel on the International Petroleum Exchange, from 24.95 dollars one week earlier.
Onthe New York Mercantile Exchange (NYMEX). "Light sweet crude" for January delivery rose to 26.15 dollars from 25.82 dollars a barrel.
Dealers said that the UN was likely to renew for six months the so-called oil-for-food deal allowing limited Iraqi crude exports to finance humanitarian relief to the Iraqi people. ■ Baghdad suspended exports last month after the UN signalled a mere two-week rollover of the deal.
The UN Security Council began discussing a draft resolu-
tion Thursday which offers to suspend the trade embargo on Iraq in exchange for its full cooperation with a new arms control body.
Officials said that the UN would vote on the wider sanctions against Iraq on Saturday.
Meanwhile, the oil deal was thought likely to be renewed late Friday.
An analyst at the Centre for Global Energy Studies. Leo Dollars, predicted that Iraqi crude would flow again within one week.
He said that the additional supplies would have little detrimental impact on global market prices because of the current low level of inventories.
"Prices will not collapse because we re still very short of oil." he said.
US data showed earlier this week that gasoline stocks surged by 8.7 million’barrels during the week to last Friday, while oil stocks marked time around the 300-million-barrel level.
* The oil price slip came despite figures from the International Energy Agency (IEA) released on Wednesday that showed world oil output averaging 73.9 million barrels per day in November. 250.000 barrels
per day fewer than in October.
World oil output has contracted sharply this year under a production squeeze of some 2.1 million barrels per day coordinated by the Organisation of Petroleum Exporting countries. The pact, supported by several key non-OPEC producers, has helped prices more than double from low points hit in February.
Non-OPEC Norway said on Wednesday that it would extend until April its own commitment under the output cutback to rein in production by 200.000 barrels per day. But the announcement bad little positive effect on prices, which remained firmly focused on the US stocks levels.
RUBBER: flat. Rubber prices were flat amid quiet trade.
The London ruotrer index fell to 487 pounds per tonne (for January) from 492 pounds and to 492 pounds (for February delivery) from 497 pounds.
In Kuala Lumpur, the RSS1 index rose to 2.63 ringgit per kilo from 2.6 ringgit.
COFFEE: chilled. Coffee firices fell in the wake of rain-all that came to quench drought-striken regions of Brazil.
. In London. Robusta (for May
delivery) fell by 79 dollars to 1,270 dollars a tonne.
In New York, Arabica (for March) fell to 122.25 cents a pound from 135.95 cents.
Weathermen predicted that the heavy rains would 1st into next week in Brazil, the world's leading producer of Arabica beans.
But some market watchers said that the rains would not be enough to counter the effects of drought that had already harmed this ear's harvest.
TEA: col. Top quality teas conUnued to rise in price, while other brews had lower demand and thus prices.
PF1 (Pekoe Fannings) rose by up to 10 cents a kilo, while lower quality PDust fell by four cents.
GRAINS: low. US wheat prices fell further as favourabled weather returned to growing regions in the United States.
In Chicago, wheat fell to 226.00 cents a bushel (9f 27.2 kg. for December) from 232.25 cents.
Maize also fell by three cents to 189 cents a bushel (of 25.4 kg. for December).
In London, wheat fell to 71.45 pounds a tonne from 72.40 pounds. .
COTTON: shrink. Cotton prices fell further on technical trades amid thin market volume as dealers awaited data from the US agriculture department.
Cash prices covered by the Cotton Outlook index fell to 44.25 cents a pound from 45.35 cents.
March contracts in New York rose slightly to 49.90 cents a pound from 48.95 cents.
WOOL: warm. Australian wool prices gained from strong demand in the auction houses.
The Eastern index, rose by five cents to 576 cents per kilo.
The Wooltops index fell by seven pence to 273 pence per kilo in the absence of auctions here.
SUGAR: sweet. Sugar prices won back some lost ground this week on technical trades in the absence of widespread producer selling
In London. May contracts rose to 1792 dollars a tonne from 173.3 dollars.
In New York, white sugar for March delivery rose to 6.10 cents a pound from 5.75 cents.
VEGETABLE OILS: slip. US soya prices fell as rainfall came to quench Brazilian growing regions.