Skip navigation
Oil Video Gallery
CNBC's Sharon Epperson discusses the day's activity in the commodities markets, and looks ahead to where oil is likely h...
A look at next week's trading drivers with Jack Bouroudjian, of IndexFuturesGroup.com; Robert Heller, of Chapdelaine Bro...
French oil engineering group Technip reported third-quarter results in line with expectations Friday. While the company ...
Watchlist Sponsored By :
powered by digg
Crude Oil Settles Above $119 for the First Time
By: Reuters | 22 Apr 2008 | 02:48 PM ET
Text Size

Oil surged almost $2 to close at a record settling price above $119 a barrel on Tuesday as supply concerns from Nigeria and the North Sea propelled crude higher.

CNBC.com

U.S. light, sweet crude [US@CL.1  Loading...      ()] finished at $119.37 on the New York Mercantile Exchange after hitting an all-time intraday peak of $119.90 earlier.

London Brent crude [GB@IB.1  Loading...      ()] gained $1.42 to trade at $115.85 a barrel, after rising to a record peak of $116.75.

Oil's fresh highs have extended a rally that has seen prices climb more than five-fold since 2002, driven by booming demand from emerging markets, such as China, that has coincided with long-term supply constraints.

The slumping U.S. greenback, which tumbled to fresh lows against the euro Tuesday, has also helped boost dollar-denominated commodities like oil and attracted speculative inflows from hedge funds.

"The trend is up and the market didn't break down when it moved lower in the morning, and you have the weak dollar and the supply disruptions are in the mix," said Eric Wittenauer, analyst at Wachovia Securities.

Pipeline attacks in OPEC member Nigeria last week shut 169,000 barrels per day (bpd) of Bonny Light production, forcing Royal Dutch Shell Plc to declare force majeure on crude oil exports.

Nigerian rebels also attacked two Shell oil pipelines in the Niger Delta Monday.

Management and union officials are in talks to avoid a planned two-day strike at Scotland's Grangemouth refinery, which could force the shut-in of some oil and natural gas production from the North Sea.

Oil producers gathered in Rome for the International Energy Forum said they can do nothing to halt oil's rally and the world might have to live with even higher prices if it wants supplies for the future.

Ali al-Naimi, oil minister to OPEC kingpin Saudi Arabia, Tuesday said a lack of investment in crude and refining capacity — not a lack of reserves — was driving prices higher.

"Recently, I have observed an unprecedented level of uncertainty, doubt and even fear in discussions about the future of energy and its impact on global economic prospects," Naimi said.

"I can assure you unequivocally that the world is not running out of oil." Rising energy costs and the wider U.S. economic crisis have forced analysts to revise downward oil demand growth forecasts for the world's largest consumer, which has lobbied OPEC to increase output to help lower prices.

President Bush on Tuesday said he was concerned about record-high crude oil and gasoline prices, and said the United States needs to tap an Alaskan wildlife refuge to boost supply.

Despite the U.S. economic woes, demand from emerging economies continues to rise.

China's oil demand leapt 8 percent in March from a year ago, the fastest rate in 19 months as refiners boosted imports ahead of the Olympics.

Copyright 2009 Reuters. Click for restrictions.
Tools:
Print EmailAdd This share icon
  • digg share

CNBC HIGHLIGHTS

  • Warren Buffett and Bill Gates spoke to Columbia students, and Buffett made the students a startling offer.
  • Brian L. Roberts
  • For the chief of cable company Comcast, growth has been about making deals – generally very large deals.
  • Some companies may start using insurance to shift carbon risk from their balance sheets to maybe... yours?
  • The president and founder of Genesis Today wants to improve America’s health, and thinks Wal-Mart can help.
  • Switzerland's privacy watchdog is taking legal action to force Google to make changes to its Street View service.
  • A wealthy, distracted Texas driver crashed his million-dollar Bugatti Veyron sports car into a salt marsh, say police.
ADD COMMENTS
Remaining characters


Current DateTime: 01:02:14 14 Nov 2009
LinksList Documentid: 29778428

Current DateTime: 01:02:14 14 Nov 2009
LinksList Documentid: 29779196

Current DateTime: 01:02:14 14 Nov 2009
LinksList Documentid: 29779199

Current DateTime: 01:02:14 14 Nov 2009
LinksList Documentid: 29779198
  Data is a real-time snapshot  *Data is delayed at least 15 minutes
Global Business and Financial News, Stock Quotes, and Market Data and Analysis

© 2009 CNBC, Inc.  All Rights Reserved.
A Division of NBC Universal
Thomson ReutersThomson Reuters