Brent gains $1 to hit $118/bbl on supply concerns

07 August 2008 09:42  [Source: ICIS news]

LONDON (ICIS news)--Crude prices rose by more than $1/bbl on Thursday to take Brent crude on ICE Futures above $118/bbl as the markets switched focus to supply concerns.

By 8:10 GMT, September Brent crude had hit a high of $118.43/bbl, a gain of $1.43/bbl over the close of $117.00/bbl, before easing back to around $117.90/bbl.

At the same time, September NYMEX crude was trading around $119.40/bbl, having hit a high of $119.84/bbl, a gain of $1.26/bbl over the close.

Tension between Iran and the West remained a concern for the oil markets as the US called for more UN sanctions after another failed attempt from Tehran to agree to stop its nuclear development programme. Elsewhere, Nigeria’s oil facilities continued to be threatened by rebels.

On Wednesday, BP declayed force majeure on loadings of Azeri light out of Ceyhan, Turkey, after transmission along the Baku-Tbilisi-Ceyhan pipeline was halted.

Initial reports suggested that the problem was merely down to a fire on a valve, but it was subsequently reported that there had been an explosion on the pipeline for which a separatist Kurdish group claimed responsibility.

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By: Giovanni Coiro
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