Crude prices top $29 on OPEC quota speculation

by The Associated Press

Crude oil futures rallied above $29 a barrel Aug. 26 amid growing speculation that the Organization of Petroleum Exporting Countries will leave its output restraints in place when it meets in September.

Venezuelan President Hugo Chavez fed the speculation Aug. 23 when he said that Venezuela will ask OPEC to leave production quotas unchanged.

“We believe production is balanced at the moment,” Chavez said. “Some countries have proposed (to increase oil production,) but we don’t agree. That’s the position we will take to the meeting” in Osaka, Japan, on Sept. 19.

Crude futures for October delivery rose 65 cents to $29.28 per barrel on the New York Mercantile Exchange.

The price of crude products also moved higher. September’s heating oil contract was 1.21 cent higher to 75.11 cents per gallon; unleaded gasoline for September delivery climbed 2.59 cents to 82 cents a gallon.

In London, Brent crude from the North Sea traded at $27.05, up 6 cents per barrel.

Also on Nymex, the price of natural gas moved higher, rising 13 cents to $3.617 per 1,000 cubic feet.