NewsFlashUS crude closes in on $120/bbl

28 April 2008 05:23  [Source: ICIS news]

SINGAPORE (ICIS news)--US crude futures hit a record high just shy of $120/bbl (€77/bbl) on Monday morning in Asian trade amid heightened supply fears following civil unrest in Nigeria and industrial action in the UK which has affected North Sea oil production.

At 03:43 GMT on Monday, June NYMEX light sweet crude futures were trading at $119.36/bbl, up $0.84/bbl from Friday’s settlement price. Earlier, the contract hit a new record high of $119.93/bbl up $1.41/bbl.

Meanwhile, June ICE Brent futures were trading at $117.31/bbl, up $0.97/bbl from the previous close, after earlier peaking at $117.34/bbl up $1.00/bbl.

Militant attacks over the weekend in the oil producing delta region of Nigeria raised further concerns regarding the country’s production after a strike last Friday shut-in around 200,000 bbls of production.

Forties terminal operator, BP, shut in the pipeline carrying 700,000 bbls of North Sea oil production on Sunday due to a strike by workers at the key 210,000 bbl/day Grangemouth refinery in Scotland.

The strike action cut power for pumping the crude to the Hound Point export terminal.

Tensions between the US and Iran, meanwhile, increased after a cargo ship chartered by the US navy fired warning shots at approaching vessels suspected to be Iranian on Friday.

($1 = €0.64)

By: James Dennis
+65 6780 4359

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