Oil hits 11-month high at US$75
Saturday, July 7, 2007
OIL surged to 11-month highs above US$75 a barrel on Friday, putting the market within reach of the all-time record of $78.65 set in August 2006.
Abductions in Nigeria's oil producing Niger Delta and increased demand from refiners in top consumer the United States helped drive the price uptrend.
London Brent crude, now seen as a better indicator of the global market, rose 25 cents to US$75 a barrel by press time, after touching a session high of US$75.10, its highest since August 14, 2006. US crude rose 12 cents to US$71.93.
"It's a combination of Nigeria and concerns about stocks in the US.
The Nigerian factor triggered prices in the midst of the summer driving season," said Gerard Rigby from Fuel First Consulting in Sydney.
The end of a one-month truce by the rebel group responsible for much of the violence directed at the Nigerian oil industry, an attack on an oil rig and the kidnapping of a 3-year-old British girl in Port Harcourt reminded investors of the continued risk to supplies from the world's eighth-largest oil exporter.
Some 700,000 barrels per day (bpd) of Nigerian production is shut in after a year and a half of attacks on its oil industry.
Concerns over whether US gasoline inventories could keep pace with robust demand lingered despite a higher-than-expected weekly stock rise of 1.8 million barrels. Gasoline supplies worldwide are also tightening.
Northwest European stock levels have fallen to a two-month low, exports from key Asian exporter China in July will drop to their lowest in 10 months and Japanese stocks this week dipped below year-ago levels for the first time this year. Reuters
Abductions in Nigeria's oil producing Niger Delta and increased demand from refiners in top consumer the United States helped drive the price uptrend.
London Brent crude, now seen as a better indicator of the global market, rose 25 cents to US$75 a barrel by press time, after touching a session high of US$75.10, its highest since August 14, 2006. US crude rose 12 cents to US$71.93.
"It's a combination of Nigeria and concerns about stocks in the US.
The Nigerian factor triggered prices in the midst of the summer driving season," said Gerard Rigby from Fuel First Consulting in Sydney.
The end of a one-month truce by the rebel group responsible for much of the violence directed at the Nigerian oil industry, an attack on an oil rig and the kidnapping of a 3-year-old British girl in Port Harcourt reminded investors of the continued risk to supplies from the world's eighth-largest oil exporter.
Some 700,000 barrels per day (bpd) of Nigerian production is shut in after a year and a half of attacks on its oil industry.
Concerns over whether US gasoline inventories could keep pace with robust demand lingered despite a higher-than-expected weekly stock rise of 1.8 million barrels. Gasoline supplies worldwide are also tightening.
Northwest European stock levels have fallen to a two-month low, exports from key Asian exporter China in July will drop to their lowest in 10 months and Japanese stocks this week dipped below year-ago levels for the first time this year. Reuters
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