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New York (AFP) March 11, 2011 Crude oil prices slumped Friday after a record earthquake slammed Japan, the world's third-largest economy, raising fears of a shock to the global economic recovery. Traders eyed lower consumption in Japan, the world's third-largest oil importer and consumer, after a week of worrying about prices jumping due to Middle East instability. New York's main contract, light sweet crude for April delivery, closed $1.54 lower at $101.16 a barrel. In London, Brent North Sea crude for April settled at $113.84, down $1.59. Financial markets were shaken after the powerful 8.9-magnitude earthquake -- the seventh biggest in history -- hit Japan Friday, unleashing a tsunami that battered Japan's northeast coast and stretched across the Pacific. "The demand for oil (in Japan) could be lower, at least temporarily, because of the earthquake," said Commerzbank analyst Carsten Fritsch. "After China and the US, Japan is the world's third biggest consumer of commodities and is dependent on imports for virtually all commodities." The temblor automatically shut down operations at Japan's nuclear reactors and the government declared a state of emergency at a nuclear power plant in Fukushima. "The tragedy in Japan is probably near-term bearish as imports are interrupted and the market sheds risk," analysts at BMO Commodity Products Group said in a client note. However, they noted, "longer term demand will probably increase if nukes remain offline." The world's third-largest economy, Japan is heavily dependent on imported oil. The New York futures contract tumbled below $100 before paring its losses by the market close. Continued fighting in Libya between the forces loyal to leader Moamer Kadhafi and rebels also weighed on the market. Loyalist forces launched at least two air strikes near the key oil port of Ras Lanuf. In Saudi Arabia, the world's biggest oil exporter, "day of rage" street protests called by Facebook activists failed to materialize. But scores of protestors were on the streets for a second day in Al-Qateef, a Shiite stronghold in the predominantly Sunni country. Saudi Arabia has said it is committed to the stability of the oil market and to ensuring that oil supplies remain available amid the Libyan unrest.
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Ecuador suspends oil exports due to tsunami threatGuayaquil, Ecuador (AFP) March 11, 2011 Ecuador's state oil company said Friday it has suspended crude oil exports due to risks posed by a Pacific-wide tsunami unleashed by a massive earthquake in Japan. "Petroecuador has suspended its oil exports and fuel imports for reasons of force majeure, and communicated its decision to companies with which it does business," Petroecuador president Marco Calvopina said in a statement. "T ... read more |
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