April 27 (Bloomberg) -- Crude oil futures rose in New York after the president of the Organization of Petroleum Exporting Countries said the official target price may be increased to compensate for a weaker dollar.
OPEC, which pumps a third of the world's oil, may boost the target by about 30 percent to $32-$34 a barrel from a range of $22-$28 now, Purnomo Yusgiantoro told reporters in Jakarta. Oil is up 43 percent from a year ago and U.S. gasoline prices are at a record, as OPEC's benchmark price has been above $28 a barrel since Dec. 1.
``OPEC is talking about raising the price band, which is putting further upward pressure on prices,'' said Tom Bentz, an oil broker at BNP Paribas Commodity Futures Inc. in New York. ``Prices have been above the band for a while but a move to increase the band would still have a psychological impact.''
Crude oil for June delivery was up 36 cents, or 1 percent, at $37.33 a barrel at 10:24 a.m. on the New York Mercantile Exchange.
In London, the June Brent crude-oil futures contract was up 32 cents, or 1 percent, at $33.90 a barrel on the International Petroleum Exchange.
Some members of OPEC say ``an increase in the price band won't hurt the world economy,'' said Purnomo, who is also Indonesia's oil minister. Oil ``at $32 to $34 a barrel is considered safe. Some members have asked for a new price band to take into account dollar depreciation and world inflation.''
OPEC may discuss whether to raise the target price at its next meeting on June 3, Purnomo said.
Committed to $25
Saudi Arabia, the world's largest oil exporter, remains committed to target oil prices at $25 a barrel, contrary to the comments by OPEC's president, the country's oil minister Ali al- Naimi said in a speech to the Center for Strategic and International Studies in Washington.
``The news on OPEC is big, although the Saudis have pretty well quashed it,'' said Bill O'Grady, director of fundamental futures research at A.G. Edwards & Sons Inc. in St. Louis.
Gasoline for May delivery was up 0.78 cent, or 0.7 percent, at $1.19 a gallon in New York. Prices rose to $1.204 a gallon, the highest since trading began in 1984.
To contact the reporter on this story:
Mark Shenk in New York at [email protected].
To contact the editor of this story:
Robert Dieterich at [email protected].
Last Updated: April 27, 2004 10:38 EDT
Crude Oil Rises as OPEC May Consider Increasing Target Price
Kid Louco
112
27-04-2004 08:48
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