lsgworldl
10-06-2004, 07:29 PM
were doomed were doomed
Oil prices in London have set new records while US prices have continued to rise, nearing $52 a barrel.
Brent crude, the London benchmark, rose 72 cents to $47.85 a barrel. In the US light crude hit highs of $51.85, a rise of 76 cents, before dipping to $51.60.
The impact of Hurricane Ivan, which shut down 30% of US production, sent New York prices surging above $50 on Tuesday for the second time this month.
Reduced US output and supply fears in Nigeria fuelled the jump, traders said.
The rise has worried economists, who warn it could push global growth lower.
Relentless rise
The US government said on Wednesday that it could take up to 90 days to restore production at offshore drilling platforms that were destroyed by Hurricane Ivan.
The hurricane put seven platforms out of action as well as damaging mobile rigs and springing leaks in oil and gas pipelines.
Ivan also disrupted operations at refineries in the Gulf, which are currently working at 90% capacity.
"Ivan has completely eliminated the cushion of spare distillate stocks in the Atlantic basin," said Yasser Elguindi of Medley Global Advisors.
"Across the globe there is rising oil product demand and little spare refining capacity to meet it."
The seemingly remorseless rise in oil prices during 2004 has accompanied warnings that demand is outstripping supply.
WHAT OIL AT $50 A BARREL COULD MEAN FOR YOU
Higher prices for petrol and other fuel
Higher air fares
Higher costs for all companies, possibly leading to job losses
Higher retail prices as costs are passed on
Economic growth hit as consumer spending falls
How will $50 a barrel hurt you?
Why are oil prices so high?
Demand pressures
China's booming economy, as well as continuing high demand from the US, is seen as a key factor.
The now-familiar worries about security in the Middle East and sabotage in Iraq are also playing a part in keeping prices high, experts say.
But many also believe that speculation in the oil market has increased, as investors look for quick returns from the volatility of oil prices.
Other problems include a fragile truce between rebels and the government in Nigeria, which pumps more than two million barrels a day - equivalent to oil cartel Opec's entire spare capacity, most of which is in Saudi Arabia.
http://news.bbc.co.uk/1/hi/business/3719090.stm
Oil prices in London have set new records while US prices have continued to rise, nearing $52 a barrel.
Brent crude, the London benchmark, rose 72 cents to $47.85 a barrel. In the US light crude hit highs of $51.85, a rise of 76 cents, before dipping to $51.60.
The impact of Hurricane Ivan, which shut down 30% of US production, sent New York prices surging above $50 on Tuesday for the second time this month.
Reduced US output and supply fears in Nigeria fuelled the jump, traders said.
The rise has worried economists, who warn it could push global growth lower.
Relentless rise
The US government said on Wednesday that it could take up to 90 days to restore production at offshore drilling platforms that were destroyed by Hurricane Ivan.
The hurricane put seven platforms out of action as well as damaging mobile rigs and springing leaks in oil and gas pipelines.
Ivan also disrupted operations at refineries in the Gulf, which are currently working at 90% capacity.
"Ivan has completely eliminated the cushion of spare distillate stocks in the Atlantic basin," said Yasser Elguindi of Medley Global Advisors.
"Across the globe there is rising oil product demand and little spare refining capacity to meet it."
The seemingly remorseless rise in oil prices during 2004 has accompanied warnings that demand is outstripping supply.
WHAT OIL AT $50 A BARREL COULD MEAN FOR YOU
Higher prices for petrol and other fuel
Higher air fares
Higher costs for all companies, possibly leading to job losses
Higher retail prices as costs are passed on
Economic growth hit as consumer spending falls
How will $50 a barrel hurt you?
Why are oil prices so high?
Demand pressures
China's booming economy, as well as continuing high demand from the US, is seen as a key factor.
The now-familiar worries about security in the Middle East and sabotage in Iraq are also playing a part in keeping prices high, experts say.
But many also believe that speculation in the oil market has increased, as investors look for quick returns from the volatility of oil prices.
Other problems include a fragile truce between rebels and the government in Nigeria, which pumps more than two million barrels a day - equivalent to oil cartel Opec's entire spare capacity, most of which is in Saudi Arabia.
http://news.bbc.co.uk/1/hi/business/3719090.stm