NYMEX crude slips under $116/bbl on BoA news

21 April 2008 17:23  [Source: ICIS news]

LONDON (ICIS news)--NYMEX light sweet crude futures fell by more than $1/bbl on Monday to take the front-month May contract below $116/bbl after Bank of America reported larger than expected quarterly losses, reviving fears of a US economic slowdown hitting oil demand.

 

By 15:30 GMT, May NYMEX crude had hit a low of $115.68/bbl, a loss of $1.01/bbl from the Friday close of $116.69/bbl, before recovering to around $116.05/bbl.

 

At the same time, June Brent crude on ICE Futures was trading around $113.30/bbl, having hit a low of $113.09/bbl, a loss of $0.83/bbl from the previous close.

 

The markets had extended Friday’s gains to hit new records during the morning session on the back of supply disruptions in Nigeria and OPEC’s comments of its intention not to increase production.

 

Two further attacks on the Bonny terminal on Monday led to Shell Group declaring force majeure on loadings through to the end of May.

 

OPEC’s decision at its last meeting in March to roll over the existing target of 29.67m bbl/day and not to meet again until 9 September has been by analysts as a contributing factor to present high prices.

By: Giovanni Coiro
+44 20 8652 3214

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