NEWS & EVENTS: Breaking News
19.06.2009 08:33
June 19. In global petroleum market headlines, oil prices headed north on Thursday as data raised hopes of an economic turnaround and disruptions from OPEC member Nigeria stoked supply concerns. US light, sweet crude jumped 34 cents to settle at USD 71.37 a barrel. London Brent crude gained 21 cents to settle at USD 71.06 a barrel. Recapping the highlights of yesterday’s trading session, the reading on the Philadelphia Federal Reserve business activity index was the highest since September 2008 while the Conference Board's forward-looking measure of the US economy posted its biggest increase in five years in May. Also, the number of US workers that filed for unemployment benefits rose last week, while the number of people staying on the benefits rolls fell for the first time since January, data showed yesterday. Oil prices have nearly doubled since February on signs of a potential economic recovery, which have sparked expectations for a rebound in fuel demand. The World Bank on Thursday raised its forecast for 2009 gross domestic product growth in number 2 oil consumer China to 7.2%, up from the 6.5% it projected in March. The economic data also helped lift US equities. Oil prices also found support after Royal Dutch Shell confirmed some oil production had been halted following an attack on one of its pipelines Wednesday in Bayelsa state in Nigeria. As we can see, the market got a boost from fresh attacks in this country and it looks like hostilities are escalating again with the market jittery about supplies from this crucial source. We believe guerrilla attacks on exposed oil infrastructure in the Niger Delta could spread in the coming weeks, although militants are divided. In other major news, OPEC President Jose Botelho de Vasconcelos from Angola said a price between USD 70 and USD 75 a barrel was good for both consumers and producer. "The (OPEC) goals are being met and I think that if by the end of the year prices remain at the USD70 to USD75 level that will be positive for the economy," he was quoted as saying yesterday. Moving forward, we believe OPEC’s comfort range is realistic, and we expect to see WTI and Brent hover within this band until new drivers – likely signs of a stronger economic recovery or a weaker dollar – come along.
| If you would like to share your opinion, you will need authorization! |