WTI oil trades near two-week high amid unrest in Egypt

West Texas Intermediate crude traded near the highest price in two weeks as an escalating conflict in Egypt fanned concern that oil shipments through the country may be disrupted. Futures were little changed after rising for a fifth day on Thursday, capping the longest stretch of gains since April. Egypt’s Muslim Brotherhood urged supporters onto the streets after noon prayers to protest the killing of hundreds of their number. A weather system heading for the Gulf of Mexico has a 50 percent chance of becoming a tropical cyclone in the next two days. Crude and fuel export terminals in Libya remain closed, while Iraq’s oil ministry said the nation plans to increase exports in September.

“The market isn’t sure of future direction and is looking at the news on balance,” Ole Hansen, the head of commodity strategy at Saxo Bank A/S in Copenhagen, said. “The market is now better prepared for disruptions than before, as we see more supply elsewhere.” WTI for September delivery was at $107.51 a barrel in electronic trading on the New York Mercantile Exchange. The volume of all futures traded was 31 percent below the 100-day average. The contract ended Thursday’s session at $107.33, the highest close since Aug. 1. Prices have advanced 1.5 percent this week. Brent for October settlement increased 33 cents to $109.93 a barrel on the London-based ICE Futures Europe exchange. The September contract expired Thursday after climbing 91 cents to $111.11, the highest since March 7. The front-month European benchmark crude was at a premium of $2.61 to WTI. The spread widened for a fourth day yesterday to $3.78.

Egyptian situation: The Muslim Brotherhood said its protests will be peaceful, after a series of attacks on state offices on Thursday pushed the official death toll from two days of violence toward 600. The government said threats to its buildings and personnel will be met with live fire. Egypt controls the Suez Canal and the Suez-Mediterranean Pipeline, through which a combined 4.51 million barrels a day of crude and refined products were shipped between the Red Sea and the Mediterranean in 2012, according to the Energy Information Administration. Traffic through the canal hasn’t been affected by the unrest.

Iraq: Iraq plans to boost shipments in September compared with the previous two months, Asim Jihad, an oil ministry spokesman, said by phone from Baghdad. The country exported 2.324 million barrels a day of crude in July, he said Aug. 7.

Yucatan Peninsula: The U.S. National Hurricane Center was tracking the weather system over Mexico’s Yucatan Peninsula. Enbridge Inc. (ENB)’s Manta Ray offshore natural gas gathering company evacuated non-essential personnel from two platforms off the coast of Louisiana as the weather system crossed land. Marathon Oil Corp. (MRO) was also clearing out some workers from its Ewing Bank facility in the Gulf of Mexico.
BP Plc (BP/) began removing non-essential personnel from four offshore platforms as drilling rigs contracted by the company halted operations. Production “remains online,” according to a statement on its website. The Gulf is home to about 6 percent of U.S. natural gas output, 23 percent of oil production and more than 45 percent of refining capacity, according to the U.S. Energy Department.

WTI surged 8.8 percent in July, the most since August last year, as Egypt’s army deposed Mohamed Mursi as president. The Middle East accounted for 35 percent of global oil output in the first quarter, International Energy Agency data show. Futures will probably decline next week on concern that the Federal Reserve will pare stimulus measures amid signs of economic growth, according to a Bloomberg News survey of analysts and traders.

Laisser un commentaire

Entrez vos coordonnées ci-dessous ou cliquez sur une icône pour vous connecter:

Logo WordPress.com

Vous commentez à l'aide de votre compte WordPress.com. Déconnexion / Changer )

Image Twitter

Vous commentez à l'aide de votre compte Twitter. Déconnexion / Changer )

Photo Facebook

Vous commentez à l'aide de votre compte Facebook. Déconnexion / Changer )

Photo Google+

Vous commentez à l'aide de votre compte Google+. Déconnexion / Changer )

Connexion à %s

%d blogueurs aiment cette page :