Oil trading around $73 in Asia ahead of OPEC meeting

Oil prices were mixed in Asia trading on Tuesday following news that OPEC’s twelve crude oil producing countries were set to hold oil output quotas unchanged in key talks.

Oil prices are being supported by anticipated demand from snowstorms over much of Europe and northeastern US as well as political tensions over a border dispute between key oil producers Iran and Iraq, traders said. New York’s main futures contract, light sweet crude for delivery in February, gained five cents to $73.77 a barrel on the NYMEX, while in London Brent North Sea crude oil futures for delivery in February fell nine cents to $72.90 on the ICE Futures Exchange.

“Weather and geo-politics are supporting oil even in the face of overwhelming supply and a glut of spare production capacity,” said Phil Flynn of PFGBest.

OPEC said it would not change output quotas in key talks to be held in Luanda Tuesday as current prices were at satisfactory levels. “The price is excellent,” said Saudi Minister Ali al-Naimi, OPEC’s most influential member. The cartel’s secretary general Abdullah El-Badri said the powerful members of the twelve member grouping must tackle the effects of high crude stockpiles, which experts say could weaken the market when demand falls in the spring.

Tags:  Asia, oil prices, oil trading, OPEC