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Oil prices resist cuts in output

Monday 17 August 1998 19:02 EDT
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OIL OUTPUT dropped sharply in July, according to the Middle East Economic Survey. Daily oil output fell by 772,000 barrels, or 2.7 per cent, last month to 27.48 million, but the effect on oil prices was offset by traders' concerns that inventories were ample and demand from Asia weak.

The average crude price in July was $12.04 per barrel, up by just $0.39 from June. While OPEC, excluding Iraq, has cut 1.78 million barrels from daily output since February, it is still short of its target by a third.

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