Monday, September 27, 2004

If it's Monday, it must be Nigeria.
Crude futures hit fresh record highs on Monday on concerns of supply disruptions in Nigeria where rebels are threatening an uprising in the oil producing region.

Royal Dutch/Shell Group said it had shut up to 40,000 barrels per day of oil production for security reasons. The company said it was still pumping about 1m b/d.

Front-month Nymex WTI hit a fresh record high of $49.74, up from its settlement on Friday of $48.88. IPE Brent crude for November delivery also hit a record high at $46.25 a barrel in early afternoon London trade, before easing to $46.11, a rise of 78 cents on the day.

Speculative funds have doubled their net long position in the Nymex crude contract from 13,198 contracts to 26,742 contracts in the week to September 21.
As turmoil returns to the global oil market, the speculators descend on the carcass like vultures. $50/barrel in New York seems assured now. Do I hear $55?

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