- Title: USA: OIL PRICES HIT A RECORD HIGH
- Date: 20th June 2005
- Summary: (BN12)NEW YORK CITY, NEW YORK, USA (JUNE 20, 2005) (REUTERS) 1. VARIOUS OIL TRADERS WEARING DIFFERENT COLOURED JACKETS BIDDING (3 SHOTS) 0.16 2. (SOUNDBITE) (English) OIL TRADER WITH PARAMOUNT OPTIONS, RAY CARBONE, SAYING: "The rally is being caused today I think from some follow through buying left over from last week. Of course there is the Nigerian problem that is in the news, a definite worry, were there to be a supply disruption from Nigeria this market would be well over sixty dollars I believe and we also have some news about a Norwegian oil strike that could materialise by Wednesday, that would certainly add fuel to this rally." 0.40 3. VARIOUS OIL TRADERS (2 SHOTS) 0.50 4. (SOUNDBITE) (English) OIL TRADER WITH PARAMOUNT OPTIONS, RAY CARBONE SAYING: "We're seeing just overall demand coming out of Asia, very strong. Even though we have these higher oil prices, the stock market and the demand in this country is still strong, the only thing that will bring this market down will be reduction of demand, at this point this is the only remedy that we can see, so there will be a point price-wise when people will change their behaviour and that will lead to rising inventories as it did earlier this year and perhaps some price relief." 1.20 (BN12)NEW YORK CITY, NEW YORK, USA (FILE) (REUTERS) 5. PAN: HEATING OIL TRUCK DRIVING PAST PETROL STATION 1.30 6. VARIOUS PEOPLE FILLING UP CARS AT PETROL STATION (3 SHOTS) 1.44 Initials Script is copyright Reuters Limited. All rights reserved
- Embargoed: 5th July 2005 13:00
- Keywords:
- Location: NEW YORK CITY, NEW YORK, USA
- City:
- Country: USA
- Reuters ID: LVA6OG85AU43LTYHKLXW7P935C0R
- Story Text: Oil spikes higher, OPEC mulls extra supply.
Oil prices hit a record high on Monday (June 20) as
worries about a possible winter fuel crunch stoked buying
by hedge funds and forced OPEC to consider releasing extra
crude.
U.S. NYMEX crude for July hit a record $59.23 per
barrel, before paring gains to stand up 28 cents at $58.75
at 1445 GMT. Brent futures for August traded in London
climbed 24 cents to $58 a barrel, having hit a fresh peak
of $58.58.
Ray Carbone, a NYMEX trader with Paramount Options said:
"The rally is being caused today I think from some follow
through buying left over from last week."
"Of course there is the Nigerian problem that is in the
news, a definite worry, were there to be a supply
disruption from Nigeria this market would be well over
sixty dollars I believe and we also have some news about a
Norwegian oil strike that could materialise by Wednesday,
that would certainly add fuel to this rally," he added.
NYMEX contracts for delivery in the last four months of
the year, when oil demand seasonally picks up in the
northern hemisphere, all traded above $60.
Prices have risen by 35 percent this year despite
almost flat-out pumping by the Organisation of Petroleum
Exporting Countries. The group's president said on Monday
he would consult other member states on releasing an
additional 500,000 barrels per day (bpd) of crude.
Carbone doesn't think there will be any relief soon,
"The only thing that will bring this market down will be
reduction of demand, at this point this is the only remedy
that we can see, so there will be a point price-wise when
people will change their behaviour and that will lead to
rising inventories as it did earlier this year and perhaps
some price relief."
OPEC has said the key to bringing prices lower is to
build more refining capacity rather than boosting crude
supply. OPEC's president reiterated the cartel was ready
to supply as much crude as was needed by the market.
Markets roared higher this week following evidence the
high oil price has failed to make a dent in U.S. fuel
demand, especially for distillates used for making diesel
as well as heating oil for winter.
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