SINGAPORE (AFP) — World oil prices crept toward the 127-dollar level in Asian trade Monday amid predictions of costlier crude despite Saudi Arabia's disclosure that it had boosted production, analysts said.
New York's main oil futures contract, light sweet crude for June delivery, rose 33 cents to 126.62 dollars per barrel in afternoon trade.
The benchmark contract had peaked at a record 127.98 dollars on Friday before settling at an all-time closing high of 126.29 dollars.
London's Brent crude contract for July rose 21 cents to 125.20 dollars per barrel, after settling at 124.99 dollars on Friday. It had earlier climbed to an all-time high of 126.34 dollars.
David Moore, a commodity strategist at the Commonwealth Bank of Australia in Sydney, said in a report that oil prices were bolstered by further US dollar weakness and "analysts further revising higher their oil price forecasts."
Saudi Arabia's oil minister, Ali al-Nuaimi, said Friday the kingdom had increased oil production by 300,000 barrels per day from May 10 in response to orders from customers, mostly from the United States, and will pump 9.45 million barrels per day in June.
But Nuaimi reiterated OPEC's long-standing view that global oil supply was balanced with demand and that market fundamentals were sound.
Saudi Arabia is the biggest producer in the 13-nation Organisation of the Petroleum Exporting Countries (OPEC), which pumps about 40 percent of the world's oil.
Iran, another major producer, said on Saturday that any output hike by OPEC as requested by the United States would not affect prices.
"This would only increase inventories," Oil Minister Gholam Hossein Nozari told reporters. "The market is oversupplied and increasing production will not affect prices."
The US dollar lost ground to most other major currencies on Friday after fresh data renewed concerns over the world's biggest economy and energy consumer.
A weaker US currency makes dollar-priced crude more affordable for holders of stronger currencies.
Analysts said that speculation about a rise in oil imports by China, the second-largest energy consumer, will also affect the market.
Oil prices have surged some 25 percent since the start of 2008, when they crossed 100 dollars for the first time.
Goldman Sachs, the most active investment bank in energy markets, predicted a jump to 141 dollars in the second half of the year for crude.
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