Oil prices dip on doubts over OPEC's production cut

06-Nov-06

Light, sweet crude for December delivery slipped to US$58.79 in midmorning Asian electronic trading on the New York Mercantile Exchange. Oil prices dipped as traders continue to be doubtful about OPEC's ability to follow through on its pledge to cut production and after threats of production disruptions in Nigeria and the United States failed to materialize. The other contributing factors have been high crude inventories and seasonally weak demand, as oil prices have retreated significantly from a summertime high above US$78 a barrel, and continue to trade in the range of US$57-US$61 over the past month.