Speculation once more being used to send crude prices to new record as crude oil trading near $120 a barrel in New York, after BP Plc shut a North Sea pipeline and gunmen attacked police guarding Nigeria's largest oil and gas terminal.
BP closed the Forties Pipeline System, carrying 40 percent of the U.K.'s oil production, after a strike at the Grangemouth refinery cut power supplies. Five police were killed in yesterday's attack in the Niger Delta, where output has dropped by 50 percent since April 25, adding to concern about supplies before the Northern Hemisphere summer driving season.
The bulls are still in control so it's no surprise to be near $120 on these supply concerns, Nigeria is back on top of traders' minds. The disruptions are real and this is high-quality crude needed by the U.S. refineries for gasoline production in the summer.
Crude oil for June delivery rose to $119.93 a barrel in after-hours electronic trading on the New York Mercantile Exchange, the highest since the futures began trading in 1983. Prices have surged 82 percent in the past year.
The production affected at the moment is pretty substantial, it all counts nowadays. The price would suggest the market is very confortable with speculation..
Brent crude for June settlement rose to $117.50 a barrel London's ICE Futures Europe exchange and was trading at $117.36 a barrel at 3:05 p.m. in Singapore. It reached a record $117.56 on April 25.
Refinery production at Grangemouth will resume on April 29 at 7 a.m. local time. Units crucial to restart flows on the Forties pipeline will have priority, Richard Longden, spokesman for operator Ineos Group Holdings Plc, said yesterday.
BP closed the Forties Pipeline System, carrying 40 percent of the U.K.'s oil production, after a strike at the Grangemouth refinery cut power supplies. Five police were killed in yesterday's attack in the Niger Delta, where output has dropped by 50 percent since April 25, adding to concern about supplies before the Northern Hemisphere summer driving season.
The bulls are still in control so it's no surprise to be near $120 on these supply concerns, Nigeria is back on top of traders' minds. The disruptions are real and this is high-quality crude needed by the U.S. refineries for gasoline production in the summer.
Crude oil for June delivery rose to $119.93 a barrel in after-hours electronic trading on the New York Mercantile Exchange, the highest since the futures began trading in 1983. Prices have surged 82 percent in the past year.
The production affected at the moment is pretty substantial, it all counts nowadays. The price would suggest the market is very confortable with speculation..
Brent crude for June settlement rose to $117.50 a barrel London's ICE Futures Europe exchange and was trading at $117.36 a barrel at 3:05 p.m. in Singapore. It reached a record $117.56 on April 25.
Refinery production at Grangemouth will resume on April 29 at 7 a.m. local time. Units crucial to restart flows on the Forties pipeline will have priority, Richard Longden, spokesman for operator Ineos Group Holdings Plc, said yesterday.
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