06/11/2007

Oil Rises to a Record


Our WorldWatch office received a news flash informing that crude oil rose to a record today as a storm approaches North Sea Platforms with 36-foot waves BP Plc and ConocoPhillips evacuate workers and cut production. This will probably cause crude-oil inventories to fall around 1.6 million barrels.

Normally a disruption in the North Sea might not have so much impact, but with jitters about Iran, Turkey and another forecast decline in crude inventories, you can see why the market's is so irregular.

Crude oil for December delivery rose to $95.89 barrel at 9:50 a.m. on the New York Mercantile Exchange. Futures climbed to $96.44 today, the highest intraday price since trading began in 1983. Prices according to last year are up 60 percent.

Brent crude oil for December rose to $92.44 a barrel on the London-based ICE Futures Europe exchange. Brent reached $92.74 a barrel, the highest since trading began in 1988.
As we informed before chances are that we'll reach $100 per barril but lets hope we won't stay there long. Prices should also come down because the Saudis are cutting prices to key customers.

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