Open

Coming up

Don't miss

Replay


LATEST SHOWS

REPORTERS

Exclusive: an unlikely victim of the 'War on Terror'

Read more

FASHION

Paris, Haute Couture Fall/Winter 2014-2015.

Read more

AFRICA NEWS

2014-07-11 21:47 AFRICA NEWS

Read more

MEDIAWATCH

Finally, a good use for new app "Yo"

Read more

THE WORLD THIS WEEK

The World This Week - 11 July 2014 (part 2)

Read more

THE WORLD THIS WEEK

The World This Week - 11 July 2014

Read more

#THE 51%

Sweden: A Feminist's Paradise?

Read more

FRANCE IN FOCUS

Politics: parties under pressure

Read more

FOCUS

In Burma, the rise of radical Buddhism

Read more

  • The third-place playoff: the World Cup game no one wants to play

    Read more

  • Hamas and Israel sustain fire despite missed targets

    Read more

  • France’s Kadri wins eighth stage at Tour de France

    Read more

  • Legal challenge to French mayor’s ban of Muslim hijab on beach

    Read more

  • Last of the Ramones, Tommy Ramone, dies aged 62

    Read more

  • Video: Outrage in wake of deadly Casablanca buildings collapse

    Read more

  • Iraqi forces ‘executed prisoners in reprisal’ for ISIS killings

    Read more

  • Ukraine promises retaliation after rebel assault

    Read more

  • Putin revives old Cuban flame and eyes Latin American minerals

    Read more

  • Kerry holds all-night talks with Afghan presidential rivals

    Read more

  • Amazon snubs French free delivery ban with one-cent charge

    Read more

  • Cleveland's NBA fans hail 'return of king' LeBron James

    Read more

  • Exclusive: an unlikely victim of the 'War on Terror'

    Read more

  • Magnitude 6.8 quake, small tsunami hit east Japan

    Read more

  • Suspect in Brussels Jewish Museum shooting drops extradition appeal

    Read more

Despite a recent decline, oil prices still top 125 dollars

©

Latest update : 2008-05-12

World oil prices eased slightly but remained above 125 dollars a barrel on Monday, after an influx of investment funds and supply worries helped push costs to another record high the week before.

New York's main oil futures contract, light sweet crude for June delivery, was 56 cents lower at 125.40 dollars a barrel.
  
The benchmark contract closed on Friday at 125.96 dollars after spiking to a record 126.25 dollars in intraday trading at the New York Mercantile Exchange.
  
Brent North Sea crude for June was 61 cents lower at 124.79 dollars a barrel after briefly hitting an all-time peak of 125.90 dollars in London on Friday before settling at 125.40 dollars.
  
World oil prices crashed through records every day last week and have rocketed 25 percent since the start of the year, when they broke the 100-dollar barrier.
  
Analysts cite a variety of factors for the price spikes, including rising energy demand from Asian powerhouse economies China and India, and a weak US dollar.
  
Unrest and militant attacks targeting oil company infrastructure in Nigeria, Africa's largest crude producer, have also pushed prices higher, analysts say.
  
Oil major Royal Dutch Shell said Saturday it was losing the equivalent of 30,000 barrels of crude oil per day because of recent attacks against its installations in Nigeria.
  
"That's quite a big, significant impact, especially in the US, because the oil is quite good quality," said Tetsu Emori, a fund manager with Astmax asset management in Tokyo.
  
The Royal Dutch Shell loss translates to 409 million naira (3.47 million US dollars) in lost revenue every day, said Chidi Izuwah, a spokesman for the Shell Petroleum Production Company.
  
Anglo-Dutch oil group Shell, Nigeria's largest oil operator, accounts for around half the country's 2.1 million barrels per day output. An upsurge in attacks by militant groups on its facilities has forced it to cut back on production.
  
Emori and other analysts say an inflow of investment funds has also been a key factor behind the surge in oil prices.
  
Sucden analyst Michael Davies said there was "keen interest in the oil market by the (investment) funds, which are currently being attracted by oil's rapid price appreciation this year.
  
"This probably explains the move higher over the last few days," he said.
  
Lehman Brothers analyst Edward Morse said another factor is "stockpiling in China to prevent shortages ahead of the Olympics" in Beijing from August 8-24.
  
Industry experts say China, which enjoys record-breaking economic growth, will need even more crude oil to provide the facilities, transportation and energy supplies that are required to power a successful Olympic Games.
  
The Organisation of the Petroleum Exporting Countries (OPEC) cartel last week insisted the oil market was well-supplied and driven by speculators rather than by underlying demand.
  
US President George W. Bush is to visit OPEC's largest producer, Saudi Arabia, on Friday, and is to express US concerns about the dramatic rise in oil prices.

Date created : 2008-05-12

Comments

COMMENT(S)