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.
PLA MANEUVERS: Although Beijing has yet to formally announce military drills, its coast guard vessels have been spotted near and around Taiwan since Friday The Taiwanese military is on high alert and is closely monitoring the Chinese People’s Liberation Army’s (PLA) air and naval deployments after Beijing yesterday reserved seven airspace areas east of its Zhejiang and Fujian provinces through Wednesday. Beijing’s action was perceived as a precursor to a potential third “Joint Sword” military exercise, which national security experts said the PLA could launch following President William Lai’s (賴清德) state visits to the nation’s three Pacific allies and stopovers in Hawaii and Guam last week. Unlike the Joint Sword military exercises in May and October, when Beijing provided detailed information about the affected areas, it
CHINA: The activities come amid speculation that Beijing might launch military exercises in response to Lai’s recent visit to Pacific allies The Ministry of National Defense (MND) yesterday said China had nearly doubled the number of its warships operating around the nation in the previous 24 hours, ahead of what security sources expect would be a new round of war games. China’s military activities come amid speculation Beijing might organize military drills around the nation in response to President William Lai’s (賴清德) recent visit to Pacific allies, including stops in Hawaii and Guam, a US territory. Lai returned from the week-long trip on Friday night. Beijing has held two rounds of war games around Taiwan this year, and sends ships and military planes
Five flights have been arranged to help nearly 2,000 Taiwanese tourists return home from Okinawa after being stranded due to cruise ship maintenance issues, the Ministry of Transportation and Communications announced yesterday. China Airlines Ltd (中華航空), and EVA Airways Corp (長榮航空) have arranged five flights with a total of 748 additional seats to transport 1,857 passengers from the MSC Bellissima back to Taiwan, the ministry said. The flights have been scheduled for yesterday and today by the Civil Aviation Administration, with the cruise operator covering all associated costs. The MSC Bellissima, carrying 4,341 passengers, departed from Keelung on Wednesday last week for Okinawa,
US president-elect Donald Trump said he would “never say” if Washington is committed to defending Taiwan from China, but “I would prefer that they do not do it [ an attack],” adding that he has a “good relationship” with Chinese President Xi Jinping (習近平). “I never say because I have to negotiate things, right?” Trump said in an interview with NBC’s Meet the Press host Kristen Welker after saying he would not reveal his incoming administration’s stance on Taiwan’s defense in the event of an attack. Asked the question again, Trump, in a reference to China, said: “I would prefer that they
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