Crude Oil Price Falls 4%

Crude Oil Price Falls

Crude oil prices dropped in late trade Tuesday after Saudi Oil Minister Ali Al-Naimiruled out cuts in production. Naimi declared the country's oil producers are expected to meet in March to negotiate the termination of production-related, but the declinein production is not going to happen.

Major oil exporter Saudi Arabia and Russia has proposed for the cessation ofproduction at the level of January, which is near record highs, only if other manufacturers to do the same.

A follow-up meeting of the penghetian production will be held in March, Naimi said at a Conference of the IHS CERAweek in Houston, adding that he expects most Statescount for levels of cessation of production of crude oil.

But Analysts remained skeptical that the cuts will be effective in balancing the market.

"If they stop production at the level of January when you have more than that provided by around one million barrels per day it just prolongs the situation of excesssupply," said Energy Analyst Dominic Haywood ' Aspect.

Likewise, Iran, which is now free of Western sanctions to the detriment of the crude oiltrade, looks unlikely to agree to stop production. According to the news report Iran'sstudent news agency (ISNA), the country's oil Minister said the freeze on the production of "ridiculous," because it does not allow Iran to regain the share of its production.

The price of crude oil futures fell US $ 1.52, or 4.55 per cent, settling at $ 31.87 per barrel. While the price of crude oil futures international benchmark Brent down $ 4.18 or 1.44, per cent, at $ 33.24 a barrel.

"Without concrete actions (to cut production), we remain skeptical that prices can move higher," according to Phillip Futures based in Singapore.

OPEC Secretary General Abdullah al-Badri said on Monday that if managed to freeze the production could trigger other actions but at the moment the Group ofmanufacturers was responsible for cutting the production itself has ended. He said ata Conference of the IHS CERAWeek in Houston to freeze output Pact reached last week between Saudi Arabia, Russia, Venezuela and Qatar are only a beginning.

An estimated 1,000,000-2,000,000 barrels of oil are produced each day over the request.

Investment Bank Jefferies estimates OPEC production reached 32.6 million barrels per day (BPD) in the second quarter, including Iran's production is higher, with the market beginning to balance with the third quarter due to production outside of OPEC dropped by 800,000 barrels per day this year.

Kurdistan's oil exports to the world market was set to be delayed for a week a secondrun, sources say shipments, a move that will deprive the area of semi-autonomousIraq from its main revenue stream because of the security situation in southeasternTurkey to deteriorate. The pipeline to Turkey port Ceyhan from fields in the North of Iraq, which brought about 600,000 barrels per day of crude oil, has been stopped since March 27, and it is not possible to continue production until February 29, the source said.

The night will be crude oil inventory data released minggua US by the EIA indicatedincreased from the previous result. If this unrealized will further improve sentimentnegative global market satiety.

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