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US Crude Oil
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Pinnacle
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15-Oct-2007 21:16
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Oil tops $85 for the first timeCrude prices continue recent climb on worries about declining oil inventories, Turkey-Iraq tension.SINGAPORE (AP) -- Oil prices kept rising Monday after closing at a new record in the previous session on worries that supplies are insufficient to meet coming winter demand and concerns over the conflict between Turkey and Kurds in northern Iraq. Light, sweet crude for November delivery added $1.13 to $84.82 a barrel in electronic trading on the New York Mercantile Exchange, midday in Europe, rising to a new high of $85.19 before receding slightly. The contract rose 61 cents to settle at a record $83.69 a barrel on Friday after rising as high as $84.05. Brent crude futures rose $1.16 to $81.71 a barrel on the ICE futures exchange in London. Recent reports have indicated that crude inventories are falling. Last week, the U.S. Energy Department reported that U.S. oil supplies declined in the week ended Oct. 5, while the International Energy Agency said that oil inventories held by the world's largest industrialized countries have fallen below a five-year average. "One of the factors that has provided underlying support to oil prices in recent weeks has been concerns that if we move into the Northern (Hemisphere) winter that oil market conditions are likely to remain tight," said David Moore, commodity strategist at the Commonwealth Bank of Australia in Sydney. Some analysts think the supply shortfall in last week's U.S. Energy Department inventory report is an anomaly. They doubt demand is as strong as recent forecasts by the department and the IEA suggest. These analysts expect oil prices will soon begin a seasonal decline to $70 a barrel, or lower. Prices were also supported by worries that Turkey could take unilateral military action against Kurdish rebels in northern Iraq, following comments by the Turkish prime minister Friday that suggest Turkey will not worry about the diplomatic consequences of such an incursion. "The main risk to supplies is currently on an escalation of the Turkish army, Kurdish militants conflict, where we believe the risk for disruptions to the Mediterranean supplies would be real," said Olivier Jakob of Petromatrix in Switzerland. U.S. Secretary of State Condoleezza Rice on Saturday urged Turkey to show restraint in its response to attacks from Kurdish rebels, but Turkish leaders have appeared to be less receptive to Washington's appeals since a committee of U.S. lawmakers passed a resolution last week labeling as genocide the World War I-era killings of Armenians by the Ottomans -- a characterization that Turkey rejects. Nymex heating oil futures rose 1.92 cents to $2.2656 a gallon while gasoline prices added 1.74 cents to $2.1025 a gallon. Natural gas futures rose 20.3 cents to $7.177 per 1,000 cubic feet. |
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Pinnacle
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15-Oct-2007 21:13
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Oil soars to new record above $85 LONDON (Reuters) - Oil zoomed to a new record high above $85 a barrel on Monday as a robust demand picture amid booming commodity markets and fresh geopolitical worries put tight oil supplies into sharp focus. U.S. light, sweet crude for November delivery was $1.15 higher at $84.84 a barrel by 7:22 a.m. EDT, off a new record high of $85.19 -- its fifth straight session of gains. London Brent crude was $1.21 higher at $81.75, off its record high of $81.93. "A run at $90 is now seen as reasonable," Citigroup analysts said in a note. Oil has remained above $80 for most of the past month after soaring from below $70 in mid-August, fuelled by a mixture of supply concerns ahead of winter and record lows for the dollar, which has driven speculators to buy oil as a hedge. Regulatory data released on Friday showed that speculators on the New York Mercantile Exchange crude oil market increased their net long positions in the week to October 9. Analysts said mounting evidence the global economy had largely shrugged off the financial market credit crunch and would grow underpinned a bullish oil outlook, especially against a backdrop of disappointing crude supplies, especially from non-OPEC producers. The Organization of the Petroleum Exporting Countries (OPEC), poised to boost supplies by an extra 500,000 barrels a day from November 1, on Monday raised its forecast for demand for its oil this winter and said it appeared more likely that top consumer the United States would avoid a sharp economic slowdown. U.S Energy Secretary Sam Bodman said last week the U.S. economy had been "remarkably resilient" to record high oil prices. Analysts said the tension that erupted last week after the Kurdistan Workers Party (PKK) said it would move back into Turkey from northern Iraq and target the Turkish government, had helped inject nervousness into an already stretched market. The Middle East pumps a third of the world's oil and supply disruptions there can hugely impact the oil price. The Turkish government is expected to seek approval from parliament this week for a major operation against the Kurdish rebels in the mountains of northern Iraq. The U.S. has urged restraint. "We haven't had geopolitics for 9-12 months, and suddenly they are coming back at the worst time... Geopolitics strikes when you least want them to," said Merrill Lynch's head of global commodity research, Francisco Blanch. Oil's surge comes at a time commodity markets are booming, led by strong demand from emerging markets such as China and India. Gold struck a 28-year high on Monday, while platinum hit a record high. Copper, lead and nickel were also high. "I think the demand picture looks fairly good. I don't think you have had a big effect of the credit crisis on oil or for that matter any commodity. They have behaved in an uncorrelated fashion. The growth momentum is pretty strong," added Blanch at Merrill Lynch. |
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kennynah
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15-Oct-2007 18:50
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today (15Oct07), US Crude Oil rose past USD84 and USD85/barrel... |
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