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New York (AFP) Feb 16, 2011 Oil prices leaped Wednesday after Israel called the expected passage of two Iranian warships to the Mediterranean a "provocation" and as anti-government protests continued in Iran and Libya. But prices in New York remained subdued after a US government report showed stockpiles continued to mount for a fifth straight week. Brent oil prices surged nearly three dollars a barrel to a day's high of $104.52 before settling up $2.14 dollars at $103.78, on new worries over Middle East risk. Meanwhile the main US contract for March, WTI light sweet crude, closed at $84.99 dollars, up 67 cents. The main push in London came after Israel said it expected two Iranian warships to pass through the Suez Canal late Wednesday headed to the eastern Mediterranean. Defense Minister Ehud Barak labelled the action "hostile" and Foreign Minister Avigdor Lieberman said it was a "provocation" that the Jewish state cannot ignore for long. "We saw Brent crude prices hit their highest levels since 2008 and that is definitely a response to Middle East risk premium," said US market specialist Phil Flynn of PFG Best Research. He said there are some supply-related problems to North Sea supplies like Brent, but that was not the main issue. "Why is Iran trying to stir the pot right now? That's what the oil traders are trying to figure out right now." Sucden analyst Myrto Sokou said the news prompted an immediate jump. "Crude oil prices rallied in the afternoon session, as WTI crude oil prices climbed toward $86 and Brent oil surged above $104, following news that two Iranian warships have planned to transit through Suez Canal to the Mediterranean Sea and reach Syria today," Sokou told AFP. US prices have been pulled down, creating a record spread between Brent and WTI, as supplies have mounted in the main Cushing, Oklahoma depot were WTI contracts are delivered. The Department of Energy announced Wednesday that US crude inventories rose by 860,000 barrels in the week ending February 11, the fifth week of increases. But expectations had been for a larger gain of 1.7 million barrels, according to analysts polled by Dow Jones Newswires. "Here in the US, record supplies are keeping the market well grounded," Flynn said.
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South Stream confident on EDF dealMoscow (UPI) Feb 14, 2011 There's no question that French energy giant EDF will join the Russian-led South Stream pipeline project, consortium head Marcel Vietor said. "To me that's already a fact. We see this as a Russian-Italian-French venture. We are already getting support from the French government," Vietor, the chief executive officer of the South Stream consortium, told the European Energy Review in an in ... read more |
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