Oil prices continue higher in Asian trade
SINGAPORE: World oil prices continued higher on Friday in Asian trade
after a sharp jump overnight driven by concerns about global crude
supplies and tensions with Iran, analysts said.
New York’s main oil futures contract, light sweet crude for August
delivery, rose 58 cents to 142.23 dollars a barrel after a jump of 5.60
dollars to close at 141.65 on Thursday at the New York Mercantile
Exchange.
Brent North Sea oil futures for August delivery rose 27 cents to
142.30. The contract leapt 5.45 dollars to settle at 142.03 on Thursday
in London.
After dropping to just above 137 dollars a barrel mid-week, prices
were regaining ground and getting ready to challenge new record highs,
said Victor Shum of Purvin and Gertz energy consultancy in Singapore.
He said the latest rally was a technical rebound, but one supported
by supply-side factors including the international stand-off with Iran
and unrest in Nigeria. Shum said a weaker US dollar, which makes
dollar-priced crude oil cheaper for buyers with stronger currencies, was
also supporting prices, while supply growth is still trailing overall
demand.
“The supply-side issues really continue to set a high floor for
prices,” Shum said.
Prices have soared since breaking through 100 dollars at the start of
the year but are still down about five dollars from record peaks near
147 dollars last week.
Tensions have risen between the West and Iran, the world’s
fourth-largest crude oil producer. The two sides have been engaged in a
long-running standoff over Iran’s nuclear programme.
Iran says the programme is for electricity but the West fears it
could be aimed toward making an atomic bomb. Iran test-fired missiles
twice this week.
Meanwhile the most high-profile rebel group in Nigeria’s oil-rich
Niger Delta said Thursday it was suspending a two-week-old unilateral
ceasefire and threatened British interests in the region.Unrest in the
Delta has reduced Nigeria’s total oil production by a quarter in the
past two years.
Singapore, Friday, AFP |
