Oil prices reach new record highs

LONDON – World oil prices bolted up to new record summits beyond US$52 (N$338) yesterday on markets nervous about tight global supplies with winter looming in the northern hemisphere.

The price of reference light sweet crude for November delivery climbed 36 cents to US$52,38 a barrel in electronic trading on the New York Mercantile Exchange, the highest level in the contract’s 21-year history. In London Brent North Sea crude oil for delivery in November rose 37 cents to US$48,36 a barrel in electronic deals, also a new record.PFC Energy analyst Jamal Qureshi said in New York prices are likely to go higher.”We’ll continue to see an upward bullish trend on price because of tight supply and with a demand that is strengthening,” he said.”It should reach the mid-50s in November but the market is so nervous that if anything happens, there’s definitely a potential for a spike higher.”Weekly US crude oil and gasoline inventories rose modestly as importers and refiners began to recover from Hurricane Ivan, the Energy Department said on Wednesday.Crude oil inventories in the week to October 1 rose 1,1 million barrels to 274,0 million, the Energy Department said.Gasoline stocks climbed 600 000 barrels to 199,4 million as refiners were able to boost output after Ivan, it said.US commercial inventories of distillates – mostly diesel and heating oil – fell by 2,1 million barrels to 123,4 million in the week to October 1, the US Energy Department said.Almost 27 per cent of the Gulf of Mexico’s 1,7 million barrels of daily oil production remains disrupted, according to the US Department of the Interior.More than 15 million barrels of output has so far been affected, equal to around 2,5 per cent of the Gulf of Mexico’s annual oil production.-Nampa-AFPIn London Brent North Sea crude oil for delivery in November rose 37 cents to US$48,36 a barrel in electronic deals, also a new record.PFC Energy analyst Jamal Qureshi said in New York prices are likely to go higher.”We’ll continue to see an upward bullish trend on price because of tight supply and with a demand that is strengthening,” he said.”It should reach the mid-50s in November but the market is so nervous that if anything happens, there’s definitely a potential for a spike higher.”Weekly US crude oil and gasoline inventories rose modestly as importers and refiners began to recover from Hurricane Ivan, the Energy Department said on Wednesday.Crude oil inventories in the week to October 1 rose 1,1 million barrels to 274,0 million, the Energy Department said.Gasoline stocks climbed 600 000 barrels to 199,4 million as refiners were able to boost output after Ivan, it said.US commercial inventories of distillates – mostly diesel and heating oil – fell by 2,1 million barrels to 123,4 million in the week to October 1, the US Energy Department said.Almost 27 per cent of the Gulf of Mexico’s 1,7 million barrels of daily oil production remains disrupted, according to the US Department of the Interior.More than 15 million barrels of output has so far been affected, equal to around 2,5 per cent of the Gulf of Mexico’s annual oil production.-Nampa-AFP