Energy prices were propped up earlier in the year by predictions that China, India and other developing nations would aggressively boost petroleum imports to feed their growing economies. But China has since taken steps to control risky bank lending and to cool off its economy.

The 12-nation Organization of Petroleum Exporting Countries early Thursday said “market fundamentals have remained weak,” even though current oil prices at about $71 are roughly double their level since December, when the group announced a record 4.2 million barrel per day cut from September 2008 levels.

“Since the market remains oversupplied and given the downside risks associated with the extremely fragile recovery, (OPEC) once again agreed to leave current production levels unchanged for the time being,” the statement said.
Associated Press

Oil prices pushed toward $69 a barrel in thin trade on Monday, with sentiment buoyed by Asian and European equities and by a decision by the G20 to keep economic stimulus measures in place. Group of 20 finance leaders, who met in London on Saturday, said they would not end economic stimulus plans until the recovery was well entrenched. Traders predicted the G20’s extended financial support would translate into higher fuel demand.

Oil prices, which fell 6.5% last week, have been trading in a range between $65 and $75 a barrel since the start of August, with prices swinging on economic data as investors seek clues about the speed of a recovery from the recession.
REUTERS

Prices for light, sweet crude fell 98 cents from Monday’s closing price. Heating oil prices fell marginally, down 0.0176 cents to $1.7705 per gallon. Reformulated blendstock gasoline dropped 0.017 cents to $1.913 per gallon. Natural gas prices lost 0.109 cents to $3.52 per million British thermal units.

At the pump, the average price for a gallon of regular unleaded gasoline was $2.505 Tuesday, up a half cent from Monday’s $2.50 a gallon, AAA said.
theFinancials.com

In turn, Medvedev stressed that Russia was interested in stable, predictable and fair oil prices. “We do not want extremely high prices that hurt the economic structure, and of course we do not want a significant drop in prices below their fair level,” he stated. With this in mind, OPEC and other countries will have to take steps to prevent any deepening of the crisis or further deterioration of the economic situation, Medvedev observed.

Caracas sees China as a key partner in its strategy of diversifying oil sales away from the U.S., which buys about half Venezuela’s crude despite years of political tensions. The South American nation aims to increase exports to China to 1 million barrels a day by 2012, up from 330,000 currently.

Venezuela and China plan to build four oil tankers and three refineries in China capable of processing heavy Venezuelan crude.

Light, sweet crude for March delivery rose 41 cents to $34.39 a barrel by afternoon in Singapore on the New York Mercantile Exchange. The contract fell $1.96 overnight to settle at $33.98 a barrel. Investors are worried that the worst U.S. recession in decades could be deepening, and taking demand for crude down with it. Job losses are a particular concern as unemployment drags on consumer spending. The collapse in crude prices threatens to make some higher-cost fields unprofitable, which could lead producers to curtail output.

Light, sweet crude for February delivery was down 2 cents at $35.38 a barrel by midday in Singapore in electronic trading on the New York Mercantile Exchange. The contract fell $1.88 overnight to settle at $35.40, after trading as low as $33.20, a five-year low.

Concerns center on the U.S., the world’s largest consumer of oil, where falling consumer demand and rising unemployment feed each other and undermine demand for crude. Oil demand fell last year and is expected to drop again this year.

The Organization of Petroleum Exporting Countries (OPEC) lowered its energy demand forecast for 2009, saying in its January report that it expects world demand for crude will fall 180,000 barrels per day in 2009 from the previous year.

OPEC has announced 4.2 million barrels a day of production cuts since September, moves that investors have so far ignored. But investors may be anticipating those output cuts will start to tighten oil supplies later in the year.

This ruling will protect Russian oil exporters from the crisis in the oil market. Earlier, the export duty on oil was $287.3 per tonne, the rate of duty on light oil products amounted to $205.9 per tonne, on dark - $110.9.