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This is an archive article published on September 12, 2000

Oil flares up again

Dealers said the firmer prices reflected profit-taking as traders bought back short positions taken out in the lead up to OPEC's meeting i...

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Dealers said the firmer prices reflected profit-taking as traders bought back short positions taken out in the lead up to OPEC’s meeting in Vienna. Brent blend crude oil, the world benchmark grade, was up 29 cents cents a barrel at $33.00 at 1413 GMT. Earlier on Monday it dipped to $32.10.

The OPEC deal drew only lukewarm praise from Western consuming governments faced with angry motorists and oil dealers warned that cold winter weather and depleted oil storage tanks in the United States might conspire to keep prices near to current levels. The upward move was "technical" rather than driven by fundamental factors, said Scott Carter, a trader at Tosco in London. The Organisation of the Petroleum Exporting Countries on Sunday agreed to raise output by 800,000 barrels per day (bpd), slightly above the pre-meeting expectations of 700,000 bpd.

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