Saudi Arabia has raised its production of oil as OPEC members act to counter market instability caused by the crisis in Libya, analysts say.
AFP - New York crude fell below $105 in Asia Wednesday as OPEC members showed signs of increasing output to counter the effects of turmoil in the Middle East and North Africa, analysts said.
New York's main contract, light sweet crude for delivery in April, shed 67 cents to $104.35 per barrel.
Brent North Sea crude for April delivery fell 76 cents to $112.30.
Jim Ritterbusch, head of oil trading advisory firm Ritterbusch & Associates, said rumours that leader Moamer Kadhafi was seeking an exit from Libya's crisis had put some pressure on prices.
OPEC is moving to offset instability in the Middle East, with Saudi Arabia indicating it has raised production and other OPEC members like Nigeria also stepping in, he told Dow Jones Newswires.
"The fact that some OPEC production hikes are reportedly beginning to develop amongst light, sweet producers such as Nigeria is placing more downside pressure on the Brent," he said.
Date created : 2011-03-09