Loading...
See More

Oil price extends gains

Mar 01 2011 09:26 AFP

Related Articles

Oil prices slip as Saudi reassures supply

Oil off highs, Saudi pumps more

Oil rises as Libya's oil industry in chaos

Oil higher as supply fears persist

Oil hits $113 as contagion fears grow

Oil surges as Libya unrest cuts supply

 

Singapore - Crude prices were higher in Asian trade on Tuesday despite oil kingpin Saudi Arabia's pledge to ensure sufficient supplies.

New York's benchmark West Texas Intermediate contract for April delivery rose 46c to $97.43 and Brent North Sea crude for April delivery was up 59c at $112.39 in the afternoon.

Fears about supply disruption due to a wave of unrest in Libya and other countries in the oil-rich Middle East sent Brent soaring close to $120 last week.

Saudi Arabia, Opec's largest producer, said on Monday it was committed to the stability of the oil market after Libya's crude production dropped due to the unrest there.

The Saudi government, in a statement carried by the state-run SPA news agency, said the cabinet had met and discussed the anti-regime protests shaking Libya "and their repercussion on oil production in that country".

Saudi Arabia "is committed to the stability of the market" and to ensuring that oil supplies remain available, the statement said, adding that the kingdom hopes Libya's production returns to normal soon.

But Chen Xin Yi, commodities analyst for Barclays Capital, said: "While news that Saudi Arabia is increasing its crude output to more than nine million barrels per day... helped ease concerns about short term supply, the crude oil produced is not an exact substitute for Libyan's crude."

Libya produces a light, sweet crude highly prized by the market.

Libya's opposition forces, in control of the country's major oil installations, said on Monday they were resuming oil exports, with the expected departure of a tanker for China.

It will be the first cargo of crude to sail from Libya since February 19, after security forces began a crackdown on anti-regime protesters in the east.

On February 22, Saudi Oil Minister Ali al-Naimi said Riyadh would compensate for any oil supply problems caused by unrest in the Middle East, but added there was no current shortage.

Saudi Arabia pumps around 8.4 million barrels of oil per day, but Naimi said the kingdom still has a spare capacity of another four million.

opec  |  libya  |  commodities  |  markets  |  oil
NEXT ON FIN24X

 
 
 

Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
0 comments
Add your comment
Comment 0 characters remaining
 

Company Snapshot

We're talking about:

Small Business

Retailers of any shape and size can now unlock the power of mobile transacting.
 
 

Hottie of the day: Nicole Meyer!

Nicole is the cover girl for the 2014 edition of SA Swimsuit! Check out some smoking hot pics of here here.

 
 

Men24.com

11 things men don’t know about their clothes
Hilarious mortal kombat elevator prank!
This is how the Top Gear presenters spend their £55 million!
Thirty and still single? There’s hope!

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...
Loading...