"Market participants are struggling to assess the situation in Nigeria following a disastrous election process. The fear of renewed supply disruption is prompting traders to buy first and ask questions later...[However] some political/oil related incident needs soon to appear, otherwise the risk will be of the market getting tired of rallying on each headline of shootings there."
Analysts in a Petromatrix report on Tuesday commenting the current bullish sentiment in crude futures, mainly driven by civil unrest surrounding the presidential election this past weekend in Nigeria
"It is no surprise. I think it would be a bigger disaster if they went ahead (with the initial launch date of May 1). If we believe this [contract] is the benchmark for the next 10 years, then a one-month delay isn't going to make a difference."
A source with an independent trading company playing down the significance of the Dubai Mercantile Exchange's decision last week to defer the launch of its Oman crude futures by one month to June 1, but offered differing opinions over the possible long-term success of the contract or whether it could lose out to a competing contract from US-based IntercontinentalExchange (ICE).
Updated: April 24, 2007
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