Select Page

Crude oil rose for a fourth day in New York after Russia cut natural gas deliveries to Ukraine, raising concern Europe s demand for oil may gain as users look for an alternative to gas.

Crude oil rose for a fourth day in
New York after Russia cut natural gas deliveries to Ukraine,
raising concern Europe’s demand for oil may gain as users look for an alternative to gas.

OAO Gazprom, Russia’s gas export monopoly, on Jan. 1 cut
gas supplies to Ukraine after the country refused to pay more than four times 2005’s rate for the fuel. Iraq’s oil exports in December fell to 1.1 million barrels a day, the lowest since the official end of the Iraq war in 2003, the British Broadcasting Corp. said.

‘If you’ve got declining gas supply and people start
burning more oil, then that’s one thing, and then you’ve also got limited supply from Iraq,’ said Andrew Harrington, an industrial economist at Australia & New Zealand Banking Group Ltd. in Sydney. ‘Suddenly there’s a bit of supply news, and a bit of demand news, and it’s the combination of those two hat’s pushing prices up.’

Crude oil for February delivery rose as much as 56 cents, or 0.9 percent, to $61.60 a barrel in after-hours electronic trading on the New York Mercantile Exchange. Oil traded at $ 61.46 at 9:23 a.m. Singapore time.

On Dec. 30, the last trading day for 2005, oil rose 72
cents, or 1.2 percent, to $ 61.04 a barrel, the highest close since Dec. 13. The exchange was shut yesterday for the New Year’s Day holiday. Prices rose 40 percent last year, more than the 34 percent gain in 2004.

Sixteen of 37 analysts surveyed by Bloomberg News last week said prices will be little changed near $ 61 a barrel this week amid signs that crude-oil stockpiles will be adequate to compensate for a possible production cut by the Organization of Petroleum Exporting Countries.

OPEC, which produces about 40 percent of the world’s oil,
is scheduled to discuss production targets at a Jan. 31 meeting. Oil prices surged on Dec. 28 after Hadi Nejad-Hosseinian, Iran’s deputy oil minister, said the group should reduce production after peak winter demand ‘to ensure stability in prices.’

Iran is OPEC’s biggest oil producer after Saudi Arabia.

Source : www.bloomberg.com

Share This