Posted on 05/03/2006 2:18:59 PM PDT by familyop
LONDON: Crude oil traded above US$74 (US$1 = RM3.61) a barrel before a United Nations hearing on Iran's nuclear programme, amid concern oil supplies will be disrupted from the country.
The US, UK and France will ask for the United Nations to demand that Iran halt its uranium enrichment programme. Iran is the world's fourth-largest oil supplier.
Iranian authorities "would have their own embargo; they wouldn't send their oil to certain countries," said Deborah White, an analyst with Societe Generale SA. "To cut oil exports will certainly not be their first choice. They need the money."
Crude oil for June delivery rose 9 cents to US$74.70 a barrel at 12.35pm in London. The contract earlier rose as much as 38 cents, or 0.5 per cent, to US$74.99 a barrel in after-hours electronic trading on the New York Mercantile Exchange.
Brent crude oil for June rose 5 cents to US$74.69 a barrel on the ICE Futures exchange in London.
Oil prices have gained 17 per cent the past two months, driven higher by the standoff between the UN and Iran. Refinery shutdowns in the Netherlands and Italy helped to push up prices yesterday. An eight-week decline in US petrol stockpiles as refiners began producing summer fuel has been keeping prices high.
Meanwhile, the Asian Development Bank's chief forecast yesterday that record-high oil prices will soften as they are unsustainable.
The statements by ADB president Haruhiko Kuroda came as oil prices headed back toward an all-time high of US$75.35 a barrel hit on April 21.
"All of the developing nations are oil importers and high consumers," said ADB president Haruhiko Kuroda.
"I think oil producers must make their best efforts to stabilise prices to sustainable levels.
"At US$75 per barrel, it's unsustainable. Some geopolitical events may destabilise the market. But apart from that, the current level is very high," he said.
He did not say what he believed the price of oil should be. - AFP
oops. crude sold off today -- to around 72 bucks, front month. bearish API report. that's all I know about that.
That's no surprise. I saw a few days ago that that President Bush ordered another flush of strategic reserves into the market.
that was last week. Oil had sold off a bit on that but bounced right back up to 75 ish subsequently. We imported less, as well, according to the API report.
It appears that The Market is rationing, as markets will, when left alone.
Yes, and thanks. The price dropped after our government's news that gas supplies are up.
Oil Prices Settle Above $72 a Barrel
http://www.chron.com/disp/story.mpl/ap/fn/3838283.html
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