US crude trading close to $103/bbl after high

29 February 2008 05:53  [Source: ICIS news]

SINGAPORE (ICIS news)--US crude futures were trading close to $103/bbl on Friday in Asia, after hitting a new record level of  $103.05/bbl earlier in the session buoyed by further weakness in the US dollar, OPEC issues and initial concerns over a damaged pipeline in Ecuador.

At 06:19 GMT on Friday, April NYMEX light sweet crude futures were trading at $102.79/bbl (€67.84/bbl), up $0.20/bbl on Thursday’s settlement price.

Earlier, the contract hit a new intra day record high of $103.05/bbl, up $0.46/bbl on Thursday’s record settlement level of $102.59/bbl.

Meanwhile, April ICE Brent futures were trading at $101.00/bbl, up $0.10/bbl on the previous close, after earlier hitting a new record of $101.27/bbl, up $0.37/bbl on Thursday’s close.

Speculative funds continued to pour into oil and other commodities as the US dollar slid to new lows against the Euro and other currencies amid further worries over the US economy and expectations that the Federal Reserve will continue to cut interest rates.

Prices received an additional boost early on Friday with news that Petroecuador had declared force majeure following the shutdown of the key Trans-Ecuadorean export pipeline after a landslide.

However, the impact of this development waned after this decision was later reversed with supplies being instead diverted to alternative transport systems.

The US has called for an increase in OPEC output, in order to ease economic strains caused by high prices. However OPEC, which meets next week, is expected to maintain production at its present level amid reports of high inventory levels.

US weekly supply data, released on Wednesday had revealed a larger than expected build in crude stocks of 3.2m bbls, against a forecasted increase of 2.5m bbls.

The data also revealed that gasoline stocks rose by 2.3m bbls compared to an expected 300,000 bbl rise. However, distillate stocks fell by 2.5m bbls.

($1 = €0.66)

By: James Dennis
+65 6780 4359

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly