Oil sets new record near $120
Written on April 28, 2008
Oil hit a new record near $120 a barrel on Monday, boosted by a string of bullish factors that include big disruptions to Nigeria’s output and a UK refinery strike, highlighting anxieties over threats to supply.
Exxon Mobil (XOM.N: Quote, Profile, Research) has shut all of its Nigerian oil production of about 800,000 since last week due a strike, according to industry sources.
Prices held firm, despite a rally in the U.S. dollar versus the euro and yen, which reflected some expectations that the U.S. Federal Reserve may not cut interest rates this week.
U.S. light crude for June delivery was up 69 cents at $119.21 a barrel by 1148 GMT (7:48 a.m. EDT), after a lifetime high of $119.93. Prices are up almost 25 percent since the start of the year.
London Brent crude was up 71 cents to $117.05.
“The Federal Reserve will have a chance to bolster the dollar if it decides to hold the line on further rate increases,” Edward Meir, analyst with broker MF Global, said in a research note http://paydayloans-on.com. “Both these developments could possibly induce a correction in energy prices later in the week, but for now the trend appears higher still.”
Crude prices have surged more than fivefold since 2002 as global supplies struggle to keep pace with rising demand in emerging economies, such as China.
The Organization of the Petroleum Exporting Countries (OPEC), that produces more than a third of the world’s oil, has refused to pump more, saying the market is adequately supplied.
Filed in: money.