WTI surges to new highs on Access on storm-related supply fears

WTI surges to new highs on Access on storm-related supply fears

Singapore (Platts)--7Jul2005


Front-month August West Texas Intermediate crude futures extended their
overnight gains and surged to fresh record highs in early Asian trade on the
Access electronic platform. The benchmark contract opened at $61.28/bbl and
moved to a high of $61.57/bbl before trading last at $61.48/bbl at 0231 GMT,
20 cts/bbl above Wednesday's close in New York. 

The contract gained $1.69/bbl to settle at a fresh record high of $61.28/bbl
on the back of storm-related disruptions. Tropical Storm Cindy passed through
Louisiana late Tuesday, causing a rash of refineries to suffer either power
outages or operate at reduced run rates. Tropical Storm Dennis in the
Caribbean Sea was upgraded to a category-1 hurricane which is expected to
stretch into the weekend and the final damage assessment might not be seen
until Saturday-Sunday. Murphy's Meraux refinery, Chalmette Refining and
Motiva's Norco were hit by power outages, while Valero reported its St.
Charles and Krotz Springs refineries were running at reduced rates.

Front-month August NYMEX product futures also gained momentum on Access,
trading sharply higher in early Asian hours. August unleaded gasoline traded
at $1.7935/gal at 0229 GMT, 36 points above Wednesday's all-time high settle
of $1.7899/gal on NYMEX. The benchmark contract rose by a hefty 10.81 cts/gal
overnight amid refinery snags. August heating oil shot up to $1.8035/gal on
Access, trading last at $1.8010/gal at 0242 GMT, 62 points above Wednesday's
all-time high settle of $1.7948/gal on NYMEX. The distillates contract rose by
6.24 cts/gal overnight.

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