New price record for crude

Crude oil futures closed at a new record high Friday, driven by tight fundamentals and geopolitical tensions.

December West Texas Intermediate (WTI), the benchmark US crude, closed at $91.86 a barrel on the New York Mercantile Exchange (Nymex). Prices broke through the $92 barrier in intraday trading. In London, Brent crude closed at $88.69/bbl.

Fears of a supply constriction ahead of the Northern Hemisphere winter have fueled the rise, drawing a fresh wave of speculative money from investors who are also being drawn in by the weak dollar and Nigerian output disruptions. A rebel attack on an oil rig in OPEC-member Nigeria operated by Italian firm ENI shut 50,000 barrels per day of production.

“The push higher may appear overdone from time to time but there is no denying that reasons for buying are well defined,” said Mike Fitzpatrick of MF Global’s Energy Risk Management Group, noting that tensions in Northern Iraq, tight supplies and forecasts of a cold weather snap in the United States were driving the situation.

"Even the weather is finally going to turn a bit bullish," he said.

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net to find out more.

Chartis Energy50 2023

The latest iteration of Chartis' Energy50 2023 ranking and report considers the key issues in today’s energy space, and assesses the vendors operating within it

2021 brings big changes to the carbon market landscape

ZE PowerGroup Inc. explores how newly launched emissions trading systems, recently established task forces, upcoming initiatives and the new US President, Joe Biden, and his administration can further the drive towards tackling the climate crisis

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here