Super Moderator
Location: essex ma
|
yup.
but imputing motive to these price fluctuations is the new astrology, don't you think?
Quote:
Oil touches new high above $146
By Javier Blas in London
Published: July 3 2008 10:04 | Last updated: July 3 2008 10:54
Crude oil prices jumped above $146 a barrel on Thursday boosted by a drop in US stockpiles and concerns about the medium-term supply and demand balance. The rise brings the oil price surge since January to 55 per cent.
The weakness of the US dollar, at its lowest level in two months against the euro, also contributed to the price rise in early trading, traders said.
But the dollar strengthened later on Thursday as the European Central Bank, after rising interest rates by 25 basis points to 4.25 per cent, suggested it would not tighten its monetary policy any time soon.
In London, Brent crude oil for August jumped to an intraday record high of $146.69 a barrel. In afternoon trading after the ECB’s interest rate increase, it was 45 cents higher at $144.71 in afternoon trading. In New York, West Texas Intermediate crude oil rose to a record of $145.85 a barrel and was later trading 30 cents higher at $143.89 a barrel.
Wholesale gasoil prices in Europe surged sharply, in the latest sign of strong demand for diesel. ICE gasoil delivery jumped 2.5 per cent to a fresh record high of $1,321 a tonne. Other products, including petrol, posted smaller price gains.
Henry Paulson, the US Treasury secretary, said on Thursday that the “predominant factor” behind the rise in oil prices was supply and demand.
“[It] is the fact that global production and capacity has not increased appreciably over the last 10 years and the demand has continued to grow and inventories are at low levels,” Mr Paulson said in London.
The concerns about supply and demand imbalances were exacerbated earlier this week when the International Energy Agency, the western countries’ oil watchdog, said that non-Opec supply will barely grow in the next five years.
In addition, the oil market was watching weather developments in the Atlantic, with up to three areas with potential to develop a tropical storm. But the traders said the risk of a storm heading to the oil-rich US Gulf of Mexico was very low.
Some traders said that the price increase was overdone and the market was ripe for a correction. Ed Meir, of MF Global in New York, said: “We think we are close to a top here, and all that is needed to trigger the selling in energy is for the euro to crack.”
But others pointed to continued tightness as illustrated by another fall in crude oil stocks. The US Department of Energy reported on Wednesday that the country’s crude stockpiles fell much more than expected last week.
Commercial inventories of crude oil fell by 2m barrels to 299.8m barrels last week, down 15 per cent from 353.9m barrels a year ago, as imports slowed and refinery demand rose. However, petrol supplies rose more than expected, up 2.1m barrels to 210.9m barrels, suggesting consumer demand was weakening.
Ali Naimi, the Saudi oil minister, said on Thursday in Madrid that a number of factors were driving oil prices higher, including a large flow of financial money, the weakness of the US dollar, geopolitics and fears that the world is running out of oil.
Saudi Arabia this month increased its production to 9.7m barrels a day, the highest level since mid-1981, in an attempt to lower prices. But its efforts have been dwarfed by supply falls elsewhere, particularly in Nigeria, but also in Mexico, the North Sea and, to a lesser extent, Russia.
Also pressing on energy investors’ minds was the intensifying war of words between Iran and the West over its nuclear programme. Opec general secretary Abdallan el-Badri said on Thursday that Iran’s crude output would be difficult to replace if the country was attacked.
|
http://www.ft.com/cms/s/0/f2bf5b14-4...077b07658.html
__________________
a gramophone its corrugated trumpet silver handle
spinning dog. such faithfulness it hear
it make you sick.
-kamau brathwaite
|