US crude jumps $2.75 on economic concerns

10 March 2008 20:41  [Source: ICIS news]

HOUSTON (ICIS news)--NYMEX light sweet crude futures for April delivery closed at $107.90/bbl on Monday, up $2.75/bbl from the previous close as speculators continued to buy crude oil contracts as a hedge against the declining US economy and soft US dollar.

The market opened higher and rallied above $107/bbl around mid-morning before easing. The rally resumed during the noon hour and the April contract set a record high of $108.21/bbl, up by $3.06/bbl, late in the session.

Demand for crude oil supplies increased on word that Shell restarted its 333,700-bbl/day Deer Park refinery in Texas following a planned maintenance programme that began on 17 January.

Also, BP announced it was restarting the 225,000-bbl/day crude oil distillation unit at its 475,000-bbl/day Texas City, Texas, complex. The unit had been out of service since Hurricane Rita blasted through the region in September 2005.

ICE Brent for April delivery also traded higher, but lagged behind the pace set by the US market. The London benchmark closed at $104.16/bbl, up $1.78/bbl, after reaching a record value of $104.35/bbl.

NYMEX refined product contracts were also higher with April heating oil up 2.64 cents to settle at $2.9734/gal. Reformulated blendstock for oxygenate blending (RBOB) gasoline closed at $2.7149/gal, up 2.06 cents.

Natural gas futures prices were firmer, up 25.5 cents to close at $10.024/m Btu.

By: Brian McIntyre
+1 713 525 2653

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