China's WINPEX to establish $15m lighting equipment plant in Ain Sokhna    Egypt, Algeria sign wide-ranging cooperation agreements    Cairo affirms commitment to Lebanese sovereignty, urges halt to cross-border violations    Gaza death toll rises as humanitarian crisis deepens, Israeli offensive expands in West Bank    Egypt expands rollout of Universal Health Insurance    Egypt's Al-Sisi links national progress to strict law enforcement, says society has role in reforming legal application    Egypt businesses eye increased trade, investment with Saudi Arabia: HSBC report    China invites Egypt to join African duty-free export scheme    Maersk to resume Suez Canal transits in early December after strategic deal    Gold prices climb on Wednesday    Oil prices edge higher on Wednesday    Egypt, Algeria agree to deepen strategic ties, coordinate on Gaza ceasefire, regional crises    Ahl Masr Hospital Launches Region's First Burn Care Conference    Egypt calls for stronger Africa-Europe partnership at Luanda summit    Egypt begins 2nd round of parliamentary elections with 34.6m eligible voters    Egypt warns of erratic Ethiopian dam operations after sharp swings in Blue Nile flows    Egypt scraps parliamentary election results in 19 districts over violations    Egypt extends Ramses II Tokyo Exhibition as it draws 350k visitors to date    Egypt signs host agreement for Barcelona Convention COP24 in December    Al-Sisi urges probe into election events, says vote could be cancelled if necessary    Filmmakers, experts to discuss teen mental health at Cairo festival panel    Cairo International Film Festival to premiere 'Malaga Alley,' honour Khaled El Nabawy    Cairo hosts African Union's 5th Awareness Week on Post-Conflict Reconstruction on 19 Nov.    Egypt golf team reclaims Arab standing with silver; Omar Hisham Talaat congratulates team    Egypt launches National Strategy for Rare Diseases at PHDC'25    Egypt adds trachoma elimination to health success track record: WHO    Grand Egyptian Museum welcomes over 12,000 visitors on seventh day    Grand Egyptian Museum attracts 18k visitors on first public opening day    'Royalty on the Nile': Grand Ball of Monte-Carlo comes to Cairo    Egypt launches Red Sea Open to boost tourism, international profile    Omar Hisham Talaat: Media partnership with 'On Sports' key to promoting Egyptian golf tourism    Sisi expands national support fund to include diplomats who died on duty    Egypt's PM reviews efforts to remove Nile River encroachments    Egypt resolves dispute between top African sports bodies ahead of 2027 African Games    Germany among EU's priciest labour markets – official data    Paris Olympic gold '24 medals hit record value    It's a bit frustrating to draw at home: Real Madrid keeper after Villarreal game    Russia says it's in sync with US, China, Pakistan on Taliban    Shoukry reviews with Guterres Egypt's efforts to achieve SDGs, promote human rights    Sudan says countries must cooperate on vaccines    Johnson & Johnson: Second shot boosts antibodies and protection against COVID-19    Egypt to tax bloggers, YouTubers    Egypt's FM asserts importance of stability in Libya, holding elections as scheduled    We mustn't lose touch: Muller after Bayern win in Bundesliga    Egypt records 36 new deaths from Covid-19, highest since mid June    Egypt sells $3 bln US-dollar dominated eurobonds    Gamal Hanafy's ceramic exhibition at Gezira Arts Centre is a must go    Italian Institute Director Davide Scalmani presents activities of the Cairo Institute for ITALIANA.IT platform    







Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.



Oil hits 3-month high above $114 on supply concern
Global oil prices soar to $114 per barrel amid weak supply from the North Sea, diminished Iran output and Israeli security concerns
Reuters Published in Ahram Online on 13 - 08 - 2012

Oil rose above $114 per barrel on Monday to the highest in more than three months as concern about supplies and hopes that governments will roll out more stimulus measures trumped signs of weakening fuel demand.
Supply of the North Sea crudes underpinning the Brent crude contract is set to hit a record low. Iranian output has been curbed by sanctions while an intensification of debate in Israel on whether to go to war with Iran over its nuclear work added to concern about disruption in Middle East supply.
Brent crude hit $114.46 a barrel, the highest since 4 May, and by 09:37 GMT was up $1.30 at $114.25. U.S. oil rose 60 cents to $93.47.
"The likelihood of some sort of intervention to stimulate economies is supporting the market," said Christopher Bellew, an oil broker at Jefferies Bache in London. "Also, the North Sea, Iran and the Middle East are still a factor."
The supply concerns countered forecasts of weakening oil demand which have weighed on prices. The International Energy Agency on Friday cut its 2013 oil demand forecast by 400,000 barrels per day, citing a slowdown in global economic activity.
"We are seeing prices rise despite weak growth outlook numbers on Friday," said Ben Le Brun, a Sydney-based market analyst at OptionsXpress. "The Israeli comments, what you see in Israeli media, is a concern. A major concern."
Prime Minister Benjamin Netanyahu said on Sunday that most threats to Israel's security were "dwarfed" by the prospect of Iran obtaining nuclear weapons, which local media reports said Tehran had stepped up its efforts to achieve.
Brent is being supported in particular by a drop in output, sending the price of immediate supplies to a widening premium to oil for delivery later, a structure known as backwardation.
Output of the four North Sea crudes that underpin Brent will sink to a record low in September due to oilfield maintenance and natural decline. Output from 11 North Sea production streams is set to fall by 17 per cent.
On Monday, the premium at which the nearby Brent contract, currently September, trades against the second month jumped to $2.02, the highest since October 2011.
"The backwardation in Brent is very big. I think that's because of the North Sea," Bellew said.
Supply concerns and the prospect of further government stimulus including a further round of quantitative easing by the U.S. Federal Reserve is likely to support a continued premium for prompt supplies, say analysts.
"Exacerbated by the recent structural supply shortage in the North Sea, Iran and other countries, we could see a period of super-backwardation, analysts at Bank of America Merrill Lynch said in a report.
"We also believe that further unconventional monetary easing will likely keep prices supported."

Clic here to read the story from its source.