http://english.aljazeera.net/NR/exeres/821E4E1D-AF74-40FF-B25F-1F23559D7161..htm
Oil prices steady after record high
Oil prices have steadied in Asian trading after hitting a record near $123 a
barrel in the previous session on worries over supply disruptions.
Prices were supported by concerns on Wednesday about supply disruptions in
Nigeria, where production at a Royal Dutch Shell PLC facility was cut after a
weekend attack.. The main armed group in Nigeria's oil-rich southern region
said on Tuesday it was willing to cease hostilities if the federal government
allowed conflict mediation by Jimmy Carter, a former US president. A string
of pipeline bombings in recent weeks has cut oil production in Nigeria by tens
of thousands of barrels per day, contributing to the sharp rise in oil prices.
June delivery fell 7 cents to $121.77 a barrel in electronic trading on the New
York mercantile exchange by midday in Singapore. The contract on Tuesday soared
to a record $122.73 a barrel before retreating to settle at $121.84, up $1.87.
"Clearly there's a lot of concerns about supply at the moment. The market's
very jittery on any type of news, particularly supply disruptions," Mark
Pervan, senior commodity strategist at ANZ Bank in Melbourne said.
"There are many in the market who think these prices are as good as it gets
and are positioned to see lower prices but we continue to see one-off supply
issues keeping prices high," he added.
The rise in crude futures also gained momentum on Tuesday as investors bought
on a Goldman Sachs prediction that oil prices could rise to $150 to $200 within
two years.
Expectations that US crude supplies increased last week were helping to limit
oil's rise ahead of the release of the US energy information administration's
report on fuel inventories later on Wednesday.
Analysts surveyed by energy research firm Platts expected the report to show
that crude oil inventories rose by 1.5 million barrels last week.
Gasoline stocks were projected to drop by 500,000 barrels, according to the
Platts survey. Inventories of distillates, which include heating oil and
diesel, were expected to have risen by 1.3 million barrels.
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