IPE Brent and WPI up on production uncertainties

At late afternoon in London on Monday, the price for IPE Brent for July delivery was up 46 cents to $48.47 per barrel after having fallen to $47.47 earlier in the day.

On the New York Mercantile Exchange, West Texas Intermediate for July gained 75 cents to rise to $49.37 per barrel in early afternoon trade, where it had earlier reached a low of $48.05 per barrel.

The price of oil began to rise on Monday in reaction to comments over the weekend by the president of OPEC that there was no reason to reduce output since the organization would be “happy” for prices to fall into the $40 to $45 per barrel range.

Some experts, however, have said that there is some internal debate within OPEC over whether or not to cut back on production. The London-based Center for Global Energy Studies said in a report released Monday that Saudi Arabia wants to maintain current production levels, but some other members would rather see production fall somewhat.

Prices were also helped when French oil producer Total said that five of its refineries had begun production again after having been closed by a strike last week.