By OGJ editors
HOUSTON, Oct. 3 -- Oil prices dropped Oct. 2 on light trading volumes due in part to the Yom Kippur Jewish holiday. Meanwhile, traders reacted indifferently to announcements that Venezuela and Nigeria plan to cut their oil production.
Analysts said market participants doubt that Nigeria's and Venezuela's plans to trim production will prompt any significant, sustained cuts in production quota levels by the Organization of Petroleum Exporting Countries (OGJ Online, Oct. 2, 2006).
Venezuelan Oil Minister Rafael Ramirez said Venezuela reduced oil output by 50,000 b/d, effective Oct. 1. Ramirez also is president of state oil company Petroleo de Venezuela SA.
The International Energy Agency reports Venezuela's production averaged 2.47 million b/d during July. Ramirez wants OPEC members to decrease production, saying current output is driving down prices.
On Oct. 1, an Iranian oil spokesman said Iran will support any effort by OPEC members to strengthen oil prices, according to the state-run Islamic Republic News Agency. The spokesman did not specify whether Iran would change its oil production.
Energy prices
The November contract for benchmark US light, sweet crudes closed at $61.03/bbl, down $1.88 on the New York Mercantile Exchange. The December contract fell $1.83 to $62.32/bbl.
On the US spot market, West Texas Intermediate at Cushing, Okla., was down $1.88 to $61.04/bbl. Unleaded gasoline for November delivery dropped by 4.52¢ to $1.5087/gal on NYMEX. Heating oil for the same month dipped 5.17¢ to close at $1.7018/gal.
The November gas contract rose by 2.3¢ to $5.643/MMbtu on NYMEX.
In London, the November IPE contract for North Sea Brent fell $2.03 to $60.45/bbl. The October gas contract edged down by 75¢ to $545.50/tonne.
The average price for OPEC's basket of 11 benchmark crudes dropped by 19¢ to $57.19/bbl.
