Oil's blistering rally kept up the pressure on consumers yesterday, retreating only modestly as key OPEC powers sought to mend a policy rift and the United States again urged lower prices.
Prices stayed in sight of nine-year peaks amid lukewarm trader reaction to a Saudi/Iranian statement calling for adequate and timely oil production. Brent Blend crude futures for April delivery shed $1.10 to stand at $30.80 per barrel in London after powering ahead $2.27 or 7 per cent on Tuesday. US light crudes were $1.13 lower at $33 a barrel.
An initial price correction was triggered by data showing unexpected rises in crude and gasoline inventories in the US last week.
Losses deepened somewhat after oil ministers from OPEC powers Saudi Arabia and Iran, meeting in Riyadh, agreed on providing adequate supplies.
In recent weeks, Saudi Arabia has signalled its willingness to raise supplies, while Iran has said that OPEC should extend the cuts because of seasonal declines in demand. Iran's stand is backed by Algeria and Libya.
The apparent division threatens to delay agreement on an output rise that many analysts say is needed as soon as possible in the large US market.
:quality(70)/cloudfront-eu-central-1.images.arcpublishing.com/irishtimes/VR3765MFOBH2NMV2QNICYDF67M.png)