Brent crude slips $2/bbl on profit taking

09 June 2008 12:19  [Source: ICIS news]

LONDON (ICIS news)--Crude futures were showing losses of more than $2/bbl during the morning session, with Brent trading just under $136/bbl after the surge on Friday which saw prices increase by $11/bbl to set new records.

By 10:50 GMT July Brent was trading at $135.81/bbl down $1.88/bbl from Friday’s close of $137.69/bbl while July NYMEX light sweet crude futures was trading around $137/bbl $1.53/bbl

This latest dip was attributed to profit taking by traders and signs earlier in the morning that the US dollar was gaining ground against major currencies.

A weak dollar and negative key unemployment data from the US triggered the latest surge in oil futures which had reached new highs, with NYMEX less than $1/bbl short of reaching $140/bbl.

Crude may even breach $150/bbl by summer due to supply weakness, said Goldman Sachs head of commodities Jeffrey Currie at the Asian Oil and Gas Conference in Kuala Lumpur, Malaysia on Monday.

Further upward pressure on Friday was generated by comments from Israeli Transport Minister Shaul Mofaz, who said that an attack on Iran’s nuclear sites appeared unavoidable, given the apparent failure of sanctions.

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By: Giovanni Coiro
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