Oil prices mixed

SINGAPORE: Oil prices were mixed in Asian trade Thursday as dealers worried about an oversupply in Middle Eastern crude, which could push down prices along with increasing US shale oil production. New York’s main contract, West Texas Intermediate for January delivery, was up 20 cents at $97.40 in afternoon Asian trade while Brent North Sea crude for January eased 19 cents to $111.69.

The Organisation of Petroleum Exporting Countries (OPEC) on Wednesday agreed to keep its production ceiling unchanged at 30 million barrels a day (bpd). However, pledges by its members Iraq and Iran to boost output in 2014 raised concerns about potential oversupply, especially if Libyan oil production is restored and US shale oil output continues to increase.

Iraq’s oil minister Abdelkarim al-Luaybi this week said his country hoped to boost exports to 3.4 million bpd next year from current levels of about 2.4 million barrels.

Iran, whose oil exports have been slashed to 1.2 million barrels due to international sanctions imposed on it for its disputed nuclear programme, could immediately ramp up exports to 4.0 million barrels if the sanctions are lifted, according to its oil minister Bijan Zanganeh.