More pressure on OPEC to raise quotas

The price of crude oil fell on Monday on profit-taking by hedge funds, while at least one analyst predicted that taking of profits could trigger a sharp decline in oil prices.

Meanwhile, another group urged the Organization of Petroleum Exporting Companies to increase their production quotas when its ministers meet in Vienna in September.

The Centre for Global Energy Studies said that OPEC is not pumping enough oil and that it must increase production if it wants to ensure a balanced market.

While OPEC continues to insist that inventories of crude oil are sufficient globally and that there are few signs that high oil prices are hurting the global economy, one report had OPEC’s president also saying that his group might increase supply, but not necessarily before the end of the year.

Still, some analysts saw a possibility that the oil cartel could begin to pump more oil in the third or fourth quarter of this year.

September contracts for Brent crude were $1 lower on the Intercontinental Exchange to trade at $76.64 per barrel, while West Texas Intermediate crude for September delivery had dropped $1.19 to $74.60 in early afternoon trade on the New York Mercantile Exchange.

At the same time, Nymex August gasoline was down 5 cents to $2.11 per gallon, while September heating oil had fallen 4 cents to $2.08 per gallon.

September natural gas dropped 42 cents in afternoon trade to $6.10 per million British thermal units.