Oil prices fall from $100 a barrel

20 February 2008

Jitters over heating oil supply appeared to calm again as Asian oil prices fell below $100 (68 euros) a barrel.

Prices had been forced up to their record price in the anticipation that the Organization of Petroleum Exporting Countries (Opec) will not increase production; the US has increased its stockpiles.

A minor explosion at a Texan refinery owned by Alon USA could also have caused some concern.

David Moore, Commonwealth Bank commodity strategist, said: "The oil price continues to be supported by concerns over oil supply.

"There is speculation that Opec will either leave oil production levels unchanged, or, possibly, even reduce production following the March 5th Opec meeting."

The industry is also monitoring the disagreement between Exxon Mobil (EM) and the Venezuelan government, which is attempting to nationalise an oil project.

EM has so far succeeded in getting several courts to suspend $12 billion of the country's oil assets, according to the Associated Press.

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