Oil prices dip

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IOL image oil rig generic FREE IMAGES An oil rig is shown in this file photo.

London - Oil prices fell slightly on Monday amid milder weather in the United States and as markets digested a weekend meeting of the world's 20 major economies.

New York's main contract, West Texas Intermediate (WTI) for delivery in April, dipped seven cents to $102.13 a barrel.

Brent North Sea crude for April slipped 19 cents to stand at $109.66 a barrel in London afternoon deals.

“The colder weather conditions in recent weeks has supported ... WTI prices as heating demand ensured distillate stocks were drawn down at a steady pace,” said Kash Kamal, research analyst at Sucden brokers.

“However, milder temperatures towards the end of the previous week and building ... crude oil inventories saw prices pull back.”

Markets also pored over the outcome of the Group of 20 meeting in Sydney on Sunday.

Finance ministers and central bank governors from the G20, which accounts for 85 percent of the world's economy, issued a statement to drive “a return to strong, sustainable and balanced growth in the global economy”.

The International Monetary Fund has said the strategy would add half a percentage point to global growth annually over four years starting next year.

The fund currently projects growth of 3.7 percent this year and 3.9 percent in 2015.

“The G20 pledging a two percent (percentage points) growth over a five-year period has provided some positive sentiments over the growth in the medium term,” Desmond Chua, market analyst at CMC Markets in Singapore, told AFP.

“The the growth target, which also reflected $2 trillion in real value terms, will support oil prices,” he said, noting the G20's shift away from austerity as economic recovery takes hold. - Sapa-AFP

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