- TOKYO, Japan (Reuters) --
U.S. crude oil futures have surged above $55 a barrel in electronic trading
due to widespread worries about northern winter fuel supplies, traders
said.
-
- NYMEX crude for November delivery surged to a fresh record
of $55.02 a barrel near 10 a.m. in Tokyo Monday as U.S. heating oil stocks
remained low.
-
- The November contract expires on Wednesday.
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- Last Friday, light crude closed at $54.93, up 17 cents
on the session at a record settlement high. Crude has climbed nearly 70
percent so far this year.
-
- In London, Brent held tight near $50, finishing Friday
at $49.90, down 16 cents.
-
- Also on Friday, U.S.Federal Reserve Chairman Alan Greenspan,
while warning of more serious risks if oil prices were to move "materially
higher," said he did not see current levels inflicting the kind of
pain on economic growth seen in the 1970s.
-
- "The impact of the current surge in oil prices,
though noticeable, is likely to prove less consequential to economic growth
and inflation than in the 1970s," Greenspan told a conference in Washington,
adding that over the long haul, technology and the transition to alternative
energy sources would ensure the world's oil supply meets demand.
-
- World prices have surged on fears that the United States
is running out of time to build winter fuel supplies, due in part to the
impact of Hurricane Ivan, which damaged oil operations in the Gulf of Mexico
last month.
-
- U.S. distillate stocks, including heating oil, fell by
2.5 million barrels to 120.9 million last week, to drop more than 8 percent
below last year, the U.S. Energy Information Administration said on Thursday.
-
- U.S. oil production in the Gulf is still running at about
72 percent of its normal rate of 1.7 million barrels per day (bpd) after
pipeline and platform damage by Hurricane Ivan, the U.S. Minerals Management
Service said on Wednesday.
-
- "There's still a noticeable impact from Ivan's shut-ins
and refinery runs are still in the doldrums, that's the reason for the
larger than expected draw in the distillates,'' said Marshall Steeves,
market analyst at brokers Refco.
-
- Tight stocks in Asia and Europe have magnified the price
rise. Japanese kerosene supplies rose four percent in the past week, but
remain about 17 percent below year-ago levels, according to industry data
released last Thursday.
-
- German consumer stocks of heating oil rose by three percent
last month to 60 percent of capacity on October 1, but remained well below
levels last year ahead of peak winter demand, trading sources said late
last week.
-
- OPEC sees higher prices OPEC President Purnomo Yusgiantoro
said last week the high oil prices would continue to rise through the end
of October because of strong demand. Crude is already up 65 percent this
year.
-
- "The oil price will continue to rise through the
end of October because demand is still high,'' he told reporters.
-
- OPEC producers are pumping at just about full capacity
to meet rapid demand growth, especially in China and the United States.
-
- OPEC's production surge has failed to cool prices as
much of its extra crude is too dense and sulphurous to produce the transportation
and heating fuels consumers crave.
-
- Demand growth in China, now the world's second biggest
energy consumer, is showing signs of slowing as the government restricts
investment and lending to stop its booming economy overheating.
-
- Limited import facilities could also curb the country's
soaring demand for foreign crude unless plans for new terminals, pipelines
and storage tanks are speeded up, oil traders say.
-
- Even so China's crude imports are expected to jump another
20 percent next year, or over 400,000 barrels bpd, to nearly three million
bpd.
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- http://edition.cnn.com/2004/BUSINESS/10/17/oil.prices.reut/
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