NYMEX oil retreats after topping $31 as trio meets

Reuters, 06.06.03, 12:10 PM ET NEW YORK, June 6 (Reuters) - NYMEX crude oil held steady at midday Friday after retreating from an early move above $31 as oil ministers from Saudi Arabia, Venezuela and Mexico gathered in Madrid to discuss oil output policy prior to OPEC's June 11 meeting, traders said. Prices hit $31 in ACCESS, met resistance under $31 in the early going today, and then retreated from resistance in the $31.13 area after finally topping $31 this morning. At 1204 EDT (1604 GMT), NYMEX July crude was 8 cents firmer at $30.82 a barrel after retreating from an early peak of $31.15. Traders had said they would watch any rally that challenges the double top of the $31.25 set on April 21 and the $31.30 and $31.32 peaks scaled on March 31 and April 1, respectively. Technical analysts on Friday were expecting nearby resistance for NYMEX July crude at $31.25, with support slated at $29.65 [nL06604353]. In London, the International Petroleum Exchange (IPE) July crude traded 18 cents higher at $27.62 a barrel. Venezuelan Oil Minister Rafael Ramirez said on Friday OPEC was prepared to make output cuts if necessary to keep prices within OPEC's $22-$28 price range [nL06588529]. Ramirez was speaking in Madrid shortly before the meeting with Saudi Oil Minister Ali al-Naimi and non-OPEC Mexico's Oil Minister Ernesto Martens. He said he expected Mexico, Norway and Russia to contribute to any future OPEC cuts needed to support oil prices. The one-day talks [nL06566136] in Madrid, set for 1600 GMT, will have the ministers representing the three countries that were architects of drastic oil curbs that helped revive depressed prices in 1998 and 1999. The return of Iraq exports will also be on OPEC's agenda. The U.S. advisor to the Iraqi oil ministry said on Friday he expected exports to reach about one million barrels per day (bpd) by the end of June [nL06557069]. However, analysts said on Thursday recent high prices could have made OPEC reluctant to cut output [nL04178763]. Iraq's State Oil Marketing Organization announced a tender on Thursday to sell crude from storage, lifting in the second half of June. But a return to prewar production levels must overcome the post-war looting that has damaged the infrastructure. NYMEX July gasoline was 0.08 cent higher at 88.60 cents a gallon, off its high of 89.50 cents that was just below resistance expected at 89.60 cents. NYMEX July heating oil futures were 0.13 cent lower at 77.10 cents a gallon, having moved in and out of positive territory.