US crude up $2.17 at record $126.29/bbl

16 May 2008 21:16  [Source: ICIS news]

HOUSTON (ICIS news)--NYMEX light sweet crude futures for June delivery settled at a record $126.29/bbl on Friday, up $2.17 after establishing another all-time high during the session.

From an intra-day low of $124.04/bbl, a sharp rally lifted the market to a record $127.82/bbl before retreating.

ICE Brent for July delivery also posted a record high of $126.34/bbl and settled at $124.99, up $2.36, just off the $125.40/bbl record settlement on 9 May.

The market received support overnight from a weakening US dollar and from ICE gas oil and NYMEX heating oil due to tight diesel supplies. A forecast by Goldman Sachs, which raised the average of prices during the second half of 2008 to $141.00/bbl, also supported market sentiment.

Reports that Saudi Arabia had implemented a token increase in production to make up losses from other OPEC producers kept the rally in check.

The market staged a short-lived downward correction following the US Department of Energy's decision to stop the delivery of 13m bbl of crude oil into the Strategic Petroleum Reserve in response to Congressional legislation.

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By: Ignacio Sotolongo
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