| Opec says demand not speculators driving market Original Source Link: (May no longer be active) http://quote.bloomberg.com/apps/news?pid=10000086&sid=ahqEIoir3bKA&refer=latin_americahttp://quote.bloomberg.com/apps/news?pid=10000086&sid=ahqEIoir3bKA&refer=latin_america
OPEC's Purnomo Says Demand, Not Speculators, Driving Oil Market
Aug. 31 (Bloomberg) -- OPEC President Purnomo Yusgiantoro said oil prices are now being driven by fundamental factors rather than speculators.
Hedge funds and other large speculators last week cut their bets that the price of New York oil would rise, according to U.S. Commodity Futures Trading Commission data. Speculative long positions, or bets prices will rise, fell by 34 percent as of Tuesday on the New York Mercantile Exchange from a week earlier.
``There are still speculators in the market, but fundamental factors -- mainly demand from China and India -- are stronger now,'' Purnomo told reporters in Jakarta.
Crude oil futures were little changed at $42.30 at 1:33 p.m. in Singapore. The contract fell to a one-month low yesterday as fighting eased in Iraq, reducing concern that supplies from the fifth-largest Middle East producer will be disrupted.
Muslim cleric Moqtada al-Sadr yesterday asked followers to stop fighting U.S and Iraqi forces, Agence France-Presse reported, citing an al-Sadr aide. Flows to the country's southern export terminals were unaffected by a weekend attack on a pipeline that links two oil fields, shipping agents said. Oil prices have fallen 14 percent since reaching a record $49.40 on Aug. 20.
``Oil prices are still below $45 a barrel, the impact from the bomb in Iraq hasn't been felt by the market,'' Purnomo said.
Long positions still outnumbered shorts by 31,434 contracts.
Last Updated: August 30, 2004 23:37 EDT
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