22 February 2011 08:13 [Source: ICIS news]
Correction: In the ICIS story headlined “Crude trades at new highs on political turmoil in Mid East” dated 22 February 2011, please read in the third paragraph: At 08:03 hours GMT, April Brent on London’s ICE futures… instead of At 08:03 hours GMT, March Brent on London’s ICE futures…. A corrected story follows.
SINGAPORE (ICIS)--Global crude prices have surged on Tuesday amid the ongoing unrest in Libya and concerns over supply disruptions following news of output cuts.
Brent crude futures rose by more than $2/bbl on the previous close to levels last seen in early September 2008, while NYMEX light sweet crude futures climbed to a price range not seen since October 2008.
At 08:03 hours GMT, April Brent on London’s ICE futures was trading at $107.80/bbl, up by $2.06/bbl from the previous day’s close, after earlier hitting a session high at $108.57/bbl.
March NYMEX light-sweet crude futures were trading at $93.53/bbl, up by $7.33/bbl from the previous close. Earlier, the US crude benchmark hit an intra-day high at $94.49/bbl.
The price change for March WTI is against last Friday’s settlement, as the US market was closed on Monday because of a public holiday.
The gains in WTI were augmented by short-covering gains ahead of the March contract’s expiry at the close of business on 22 February.
The shutdown would affect around 100,000 bbl/day of oil production, according to a statement on Wintershall’s website.
The company’s production comprises around 6% of Libya’s daily 1.58m bbl/day output, according to data from the International Energy Agency (IEA).
Media reports said a strike had halted output from Libya’s approximately 100,000 bbl/day Nafoora oilfield, which is operated by state-owned National Oil Corp (NOC) subsidiary Arabian Gulf Oil Co (AGOCO).
However, Italy’s Eni – the largest foreign oil producer in Libya – said in a statement its facilities were still in operation but it was evacuating its non-essential staff.
The producer has an output of around 244,000 bbl/day of oil equivalents, according to the statement.
($1 = €0.74)
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