OPEC Promise Causes Oil Prices Drop

World oil prices edged lower on Tuesday in New York, as OPEC guaranteed to continue producing above newly trimmed quotas and the rise of the US oil supplies.
News from Saudi Arabia encouraged profit-taking from Monday's peaks after the American government announced Saudis had promised to keep prices between US$22-US$28 a barrel and shipping brokers said the kingdom had booked extra cargoes in May.
US light crude futures ended two cents lower at US$37.50 per barrel in New York, while European benchmark Brent was down 33 cents to settle at US$33.13 a barrel, off more than US$1 from the post-Iraq war peak reached on Monday.
"We would expect oil prices to come off on their own given the availability of spot cargoes, but with petrol still near record-high levels we are not compellingly bearish here," brokers Refco said in a report. "The market remains highly volatile."
Opec President Purnomo Yusgiantoro said on Monday the group was firm in its policy to allow production leakage to cool blistering oil prices. He also reaffirmed the cartel's adherence to its price band.