The price of oil gave up early gains today in a market that was relatively sanguine about the US-led military strikes on targets in Afghanistan launched overnight.
A barrel of Brent North Sea reference crude opened higher at 22.08 dollars before falling back to 21.68 dollars, just five cents higher than its Friday closing value.
"The markets had already priced it in," said Salomon Smith Barney oil expert Mr Peter Gignoux. "It may go a bit higher, but this isn't a big move at all. The oil market worries about disruption of supply and this has nothing to do with disruption of supply".
The basket oil price used by the Organisation of Petroleum Exporting Countries (OPEC) was stuck below the crucial 22-dollar threshold for a 10th day on Friday, the cartel said today.
Under a price-band mechanism the 10-day period below the 22-28 dollar target range would trigger an automatic OPEC production cut of 500,000 barrels per day.
Earlier today, an OPEC spokesman said its ministers were discussing how to react to the start of US-led attacks on Afghanistan and could make a statement later in the day.
New York light sweet crude futures closed Friday's session at 22.39 dollars, down 24 cents.
AFP
