Crude oil from the United States (U.S.) West Texas Intermediate (WTI) declined from the highest level. This is because Saudi Arabia to increase production, and the prospects for conflict resolution on Iran nuclear program has improved.
WTI has declined as much as 0.4 percent after it had gained 1.4 percent last week, the biggest gain in a month. In February, noted Saudi Arabia’s crude oil production reached its lowest level 20 monthly.
Saudi Arabia will increase crude oil production in February reached 9.15 million barrels per day, an increase of 100 thousand barrels from the previous month, the Persian Gulf official said, asking not to be identified because the information is confidential.
On the other hand, Iran is experiencing sanctions from Western countries to export energy as uranium enrichment, get fresh air as Foreign Minister Ali Akbar Salehi agreed to hold a renegotiation.
“It helped to raise expectations for the next round, and may help in taking some off the side of the oil prices,” said the head of Dubai-based consultancy Manaar Energy Consulting and Project Management, Robin Mills, as quoted by Bloomberg, on Monday (11/3/2013 ).
WTI for April delivery fell 35 cents to USD91, 60 per barrel in electronic trading on the New York Mercantile Exchange. Volume WTI traded 69 percent below the average of 100 trading days.
However, WTI still rose 39 cents to USD91, 95 per barrel on March 8, the highest close since Feb. 28. Prices are down 0.2 percent this year.
Meanwhile, the European crude benchmark, London Brent for April delivery fell 36 cents to USD110, 49 per barrel on the London-based Futures Europe exchange ICE. Disparities between Brent to WTI closed at USD18, 86 per barrel.