NYMEX crude up $5/bbl on Iran, US tensions

07 October 2008 15:38  [Source: ICIS news]

LONDON (ICIS news)--NYMEX light sweet crude futures gained more than $5/bbl on Tuesday to take the front month November contract above $93/bbl on the back news that a US warplane was forced to land in Iran.

By 14:20 GMT, November NYMEX crude had hit a high of $93.02/bbl, a gain of $5.21/bbl from the Monday close of $87.81/bbl, before easing back to around $90.20/bbl.

At the same time, November Brent crude on ICE Futures was trading around $85.45/bbl, having hit a high of $87.99/bbl, a gain of $4.31/bbl from the previous close.

Prices gave back most of the gains and were trading more than $2/bbl up as reports from Iran noted that a number of senior US military officials had been released, suggesting that the incident was a misunderstanding.

US crude futures had been trading more than $2/bbl up for most of the trading session after sharp falls to eight-month lows on Monday as the dollar eased off highs and hopes were raised of global interest rate cuts.

Expectations of a possible plan by leading economies to cut interest rates to boost depressed financial markets were buoyed on Tuesday by news the Australian central bank had reduced interest rates by 100 basis points - the largest such cut in more than 25 years.

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Author: Giovanni Coiro
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