Oil prices rise in Asia despite Saudi talks call

ABS-CBN News

Posted at Jun 10 2008 10:18 AM | Updated as of Jun 10 2008 06:18 PM


Agence France Presse


SINGAPORE - Crude oil rose in Asia on Tuesday despite a call by the world's leading producer, Saudi Arabia, for talks with consumer nations on soaring prices.

New York's main oil futures contract, light sweet crude for July delivery, gained 57 cents to 134.92 dollars a barrel. The contract slid 4.19 dollars a barrel to close at 134.35 dollars Monday at the New York Mercantile Exchange.

Brent North Sea crude for July delivery rose 44 cents to 134.35 dollars a barrel, after a fall of 3.78 dollars to 133.91 dollars in London on Monday.

On Friday, the two benchmark crude oil futures contracts hit record all-time highs of 139.12 dollars in New York and 138.12 dollars in London.

The New York contract had its largest price jump on record -- 10.75 dollars -- to settle at 138.54 dollars.

Global pressure is building to cool oil prices which are stoking inflation and fuelling unrest.

Saudi Arabia on Monday called for talks with consumer nations on the problem and reiterated its readiness to meet any increase in demand.

At a meeting chaired by King Abdullah, the Saudi cabinet restated its view that the leap in prices was unjustified by fundamentals.

But it added it had asked Oil Minister Ali al-Nuaimi to "convene a meeting soon of representatives of producer and consumer nations and firms operating in the production, export and trading of oil to discuss the jump in prices, its causes and how to deal with it objectively."

The cabinet statement, carried by the official SPA news agency, also said Saudi Arabia has notified oil companies with which it does business, as well as consumer nations, "of its readiness to provide them with any additional quantities of oil they need."