Oil rises as storm threatens US Gulf coast
Tuesday, 29 June 2010
SINGAPORE, June 28 (AFP): Oil prices rose in Asian trade Monday as a major tropical storm churned towards the oil-producing Gulf of Mexico region, analysts said.
New York's main contract, light sweet crude for August delivery climbed 36 cents to 79.22 dollars a barrel while London's Brent North Sea crude for August rose 36 cents to 78.48 dollars.
"The market is seeing some short-covering and I think it's possible that it will try to test 80 dollars in London time," said Tokyo-based Ken Hasegawa, an energy desk manager with the Newedge brokerage.
Hasegawa said the market was also eyeing the first major storm of the Atlantic hurricane season, which headed towards the southwestern Gulf of Mexico on Sunday, threatening oil platforms in the area.
Prices jumped last week as the market fretted about the potential impact of Tropical Depression Alex on global energy supplies, pushing the New York contract 2.35 dollars higher Friday.
The Gulf of Mexico supplies a substantial portion of oil needs in the United States, the world's biggest energy consuming nation.
"There is no damage so far but if it causes some destruction... it's possible (for prices) to continue to go up," Hasegawa told AFP.
For the week, Hasegawa said he expected prices to trade between 75 and 80 dollars a barrel.
New York's main contract, light sweet crude for August delivery climbed 36 cents to 79.22 dollars a barrel while London's Brent North Sea crude for August rose 36 cents to 78.48 dollars.
"The market is seeing some short-covering and I think it's possible that it will try to test 80 dollars in London time," said Tokyo-based Ken Hasegawa, an energy desk manager with the Newedge brokerage.
Hasegawa said the market was also eyeing the first major storm of the Atlantic hurricane season, which headed towards the southwestern Gulf of Mexico on Sunday, threatening oil platforms in the area.
Prices jumped last week as the market fretted about the potential impact of Tropical Depression Alex on global energy supplies, pushing the New York contract 2.35 dollars higher Friday.
The Gulf of Mexico supplies a substantial portion of oil needs in the United States, the world's biggest energy consuming nation.
"There is no damage so far but if it causes some destruction... it's possible (for prices) to continue to go up," Hasegawa told AFP.
For the week, Hasegawa said he expected prices to trade between 75 and 80 dollars a barrel.