Uncertainty over future oil output caused prices to seesaw on Monday, first soaring past $US33 a barrel to their highest level since December 2000, then plunging to a 10-week low.
The fall was triggered by suggestions that the OPEC oil producers cartel may increase output, and Venezuelan government predictions that exports could begin to recover next week.
The price of oil for delivery in February slipped as trading began on the New York NYMEX market on 31 December. In out-of-hours electronic trading, it had slipped to $US31.41, down $US2 from a two-year peak of $US33.65 reached on Monday.
In London, the price of a barrel of benchmark Brent crude peaked at $US30.60 on 30 December, but it had dropped to $US28.66 by the time trading ended for 2002.
Comments from Kuwait's acting oil minister to the effect that OPEC would hold an emergency meeting to discuss boosting output has helped drive the price of oil down. OPEC has a commitment to raise output if the oil price exceeds $US28 a barrel for 20 days in a row.
Hopes of ending the supply side pressure on oil production got a boost from Venezuela's oil minister Rafael Ramirez, who said exports would improve to at least a third of normal levels next week.
