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Posts Tagged ‘Brent Crude’

Oil rises as Libyan unrest disrupts supplies

Posted by Admin on February 23, 2011

http://news.yahoo.com/s/nm/20110222/bs_nm/us_markets_oil;_ylt=Alr_cjnQRICBiLJNFjuLIDZ34T0D;_ylu=X3oDMTJrc2l2ZHE4BGFzc2V0A25tLzIwMTEwMjIyL3VzX21hcmtldHNfb2lsBHBvcwMzMgRzZWMDeW5fYXJ0aWNsZV9zdW1tYXJ5X2xpc3QEc2xrA2Z1bGxuYnNwc3Rvcg–

Protesters stand in the street in this undated ...

Protesters stand in the street in this undated picture made available on Facebook February 20, 2011

NEW YORK (Reuters) – Brent crude rose and U.S. oil hit a 2-1/2 year high on Tuesday as the revolt in Libya disrupted the OPEC nation’s supplies and raised concern unrest could spread to other oil producing countries in the region.

More than 8 percent of Libya’s 1.6 million barrels per day (bpd) of oil production has been shut down by the political violence, with Italian ENI and Spain’s Repsol shutting in output.

Trade sources said the country’s marine oil terminals were disrupted by a lack of communications as rebel soldiers said the eastern region of the country had broken free from Muammar Gaddafi. Libya also declared force majeure on all oil product exports, traders said.

Oil gave up some early gains after Saudi Arabian Oil Minister Ali al-Naimi said that the Organization of the Petroleum Exporting Countries would be ready to meet any shortage from a supply disruption.

Brent crude traded up 76 cents to $106.50 a barrel at 11:44 a.m. EST, off earlier highs of $108.57 a barrel. Brent hit a 2-1/2 year high of $108.70 a barrel on Monday.

U.S. crude for March delivery, which expires at the end of the session, rose $5.65 to $91.85 a barrel, after touching $94.49 a barrel, which was the highest level since October 2008. The more actively traded April contract gained $5.15 to trade at $94.86 a barrel.

The stronger gains in U.S. crude was partly explained by the fact that while the contract was active in electronic trading on Monday, there was no settlement as the exchange in New York was closed for the Presidents Day holiday.

“Geopolitical events have sparked a move higher as oil prices have rocketed on the headlines out of Libya,” said Chris Jarvis, president of Caprock Risk Management in Hampton Falls, New Hampshire.

Saudi Arabia’s Naimi, speaking on the sidelines of the International Energy Forum in Riyadh, said worldwide oil spare oil capacity was between 5-6 million bpd.

(Reporting by Matthew Robinson, Gene Ramos, David Sheppard in New York; Claire Milhench in London and Francis Kan in Singapore; Editing by David Gregorio)

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World economy can withstand $100 oil price: Kuwait

Posted by Admin on December 26, 2010

CAIRO (Reuters) – The global economy can withstand an oil price of $100 a barrel, Kuwait’s oil minister said on Saturday, as other exporters indicated OPEC may decide against increasing output through 2011 as the market was well supplied.

Analysts have said oil producing countries are likely to raise output after crude rallied more than 30 percent from a low in May because they fear prices could damage economic growth in fuel importing countries.

European benchmark ICE Brent crude for February closed at $93.46 on Friday after hitting $94.74 a barrel, its highest level since October 2008.

Arab oil exporters meeting in Cairo this weekend said they saw no need to supply more crude as stocks were high and prices had been inflated temporarily by cold weather in Europe.

Asked by Reuters if the world economy could stand a $100 oil price, Kuwaiti Oil Minister Sheikh Ahmad al-Abdullah al-Sabah said: “Yes it can.”

Iraq’s new oil minister and the head of Libya’s National Oil Corporation both told Reuters that $100 was a fair price, while Qatar’s Minister Abdullah al-Attiyah said he did not expect OPEC to increase production in 2011.

“I do not expect an OPEC meeting before June because oil prices are stable,” he said.

Some delegates even called for exporters to comply better with agreed production limits. OPEC members’ compliance with promised cutbacks reached 56 percent in November, according to Reuters estimates.

When asked if output could be raised, Kuwait’s Sheikh Ahmad said: “No. More compliance, more compliance.”

MARKET “WELL SUPPLIED”

The Cairo meeting of the Organization of Arab Exporting Countries (OAPEC) brought together Arab members of OPEC including top exporter Saudi Arabia, which has traditionally been viewed as a price moderate, as well as non-OPEC countries Tunisia, Egypt, Syria and Bahrain.

OPEC cut output drastically after the global financial crisis struck in 2008 to prop up collapsing oil prices.

As demand has risen steeply in 2010 and is expected to rise further in 2011, the market is watching closely whether OPEC can release at least some of its spare capacity to prevent prices from soaring to around $150 per barrel as they did before the crisis struck in summer 2008.

OPEC’s most influential oil minister, Saudi Arabia’s Ali al-Naimi, said on Friday he was still happy with an oil price of $70-80 a barrel and there was no need for an extra OPEC meeting before the next scheduled one in June.

Others in the group have been pressing for a higher price, arguing that quantitative easing and a weakened U.S. dollar that spurred gains across financial markets mean the oil price strength is partly nominal.

Egyptian Oil Minister Sameh Fahmy said the current increase in oil prices was the result of higher demand on heating fuel because of the cold weather in Europe.

United Arab Emirates Oil Minister Mohammed al-Hamli said crude oil inventories are “quite high. It’s the highest over the five years average… The market is well supplied.”

(Reporting by Sherine El Madany, Shaimaa Fayed, Amena Bakr, Ashraf Fahim and Yasmine Saleh; Writing by Tom Pfeiffer; Editing by Mike Nesbit)

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