Crude rises on North Sea supply, Middle East concerns, weak dollar

21 September 2012 13:17  [Source: ICIS news]

SINGAPORE (ICIS)--Crude futures increased on Friday, rising by more than $1/bbl at one stage, buoyed by a weaker US dollar, disruptions to North Sea supplies, and tensions in Libya and the Middle East.

At 11:43 GMT, November Brent crude on London’s ICE futures exchange was trading at $110.80/bbl, up by 77 cents/bbl from the previous close. Earlier, the North Sea benchmark rose to a session high of $111.11/bbl, up by $1.08/bbl.

November NYMEX light sweet crude futures (WTI) were trading at $93.18/bbl, up by 76 cents/bbl from the previous close. Earlier, the US benchmark rose to a session high of $93.48/bbl, up by $1.06/bbl.

Crude values climbed on concerns that supplies of key North Sea of Forties crude have been subject to further disruption. News emerged on Thursday of additional delays to the October loading programme for Forties amid expectations that ongoing field maintenance work, which has reduced production, will need to be extended.

Heightened tensions and instability in Libya and the Middle East also added to supply concerns. Meanwhile, the US dollar softened against leading currencies which made dollar-denominated commodities such as crude more attractive to overseas investors.

Gains in crude prices on Friday followed on from a rally in the previous session, which had broken a three-day decline in crude. The decline earlier this week had been triggered by a combination of concerns over a potential Spanish bailout, disappointing Chinese manufacturing data, and increased US crude inventories, as well as Saudi Arabia’s pledge to raise oil output to prevent hikes in crude prices.

By: James Dennis
+65 6780 4327

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