Oil prices at 11-week high point

June 6, 2003, 11:00PM Dow Jones News Service

NEW YORK -- U.S. crude oil futures ended at an 11-week high Friday, as traders covered short positions ahead of a meeting of three key oil ministers.

The oil ministers of Saudi Arabia, Venezuela and non-OPEC Mexico met in Madrid on Friday to discuss market conditions ahead of a meeting of OPEC ministers in Doha, Qatar, on Wednesday.

In a statement released after the market closed, the three ministers -- Ali al-Naimi of Saudi Arabia, Rafael Ramirez of Venezuela and Ernesto Martens of Mexico -- pledged to watch the markets closely and to ensure "normal" crude supplies.

While asserting that market fundamentals are in balance, the three officials vowed to ensure fair oil prices.

At the New York Mercantile Exchange, light, sweet crude for July delivery rose 54 cents to close at $31.28 a barrel, the highest settlement for a front-month contract since March 18.

July heating oil gained .95 cent to close at 78.18 cents a gallon. July gasoline gained .83 cent to close at 89.35 cents a gallon.

July natural gas futures fell 1.1 cent to $6.51 per thousand cubic feet.

At London's International Petroleum Exchange, July Brent ended with a gain of 34 cents at $27.78 a barrel.

Some OPEC officials indicated recently that the group may cut output. But with oil prices up more than 22 percent over the past four weeks and Iraqi exports suspended for a third month, the producer group is now widely expected to keep output quotas unchanged.