IPE Brent surges towards $70/bbl on Iran, Nigeria supply concerns

London (Platts)--11Apr2006

IPE Brent crude futures in London surged higher extending the
gains from Monday as concerns persisted about US media reports citing the
White House plans for the possible use of military force against Iran.
Unplanned US refinery outages and the ongoing shut in of Nigerian barrels
were also providing a bullish impetus.
By 1020 London time, the front-month May Brent futures contract was
trading up 72cts at $69.47/bbl, close to the high of the day so far. On
Monday, the front-month May Brent futures contract hit an all-time high of
$68.99/bbl, but settled just below at $68.75/bbl. "There is only bullish news
and the market is extremely firm", one broker at Man Financial said.
Fund activity was providing a a major influence with the non-commercials
or hedge funds positioning themselves onto the long side of the market across
the complex. According to the latest Committment of Traders Report from
Monday, the non-commercials were holding net long positions in crude oil,
gasoline and heating oil. Brokers said that funds could be seeking to lock in
profits if oil prices pushed above $70/bbl, however it could be unlikely given
the long holiday weekend. "You would not want to be short heading into easter
with the current uncertainty," Man Financial said.
US refinery snags were also adding to the bullish sentiment with the
focus on gasoline supplies ahead of the so-called US driving season. French
major, Total over the weekend shut two sulfur recovery units at its 174,575
b/d Port Arthur, Texas, refinery, and Citgo shut a fluid catalytic cracker at
its 156,750 b/d Corpus Christi, Texas, plant. Both were unplanned shutdowns.
--Paul Wightman, paul_wightman@platts.com

For more news, request a free trial to Platts Oilgram Price Report at
http://www.platts.com/Request%20More%20Information/


 

Copyright © 2005 - Platts

Please visit:  www.platts.com

Their coverage of energy matters is extensive!!.