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Oil hits new high amid norway strike fears { June 21 2005 } Original Source Link: (May no longer be active)
http://news.ft.com/cms/s/2d0c154e-e237-11d9-84c5-00000e2511c8.htmlhttp://news.ft.com/cms/s/2d0c154e-e237-11d9-84c5-00000e2511c8.html
Oil hits new high amid Norway strike fears
By Kevin Morrison and Peter Garnham
Published: June 21 2005 11:54 | Last updated: June 21 2005 20:56
Crude oil futures eased hit a new high on Tuesday amid the lingering threat of an oil workers strike in Norway, which could affect up to one- third of production from the world’s third-largest oil exporter.
Mediation of the dispute between the union and the Norwegian Oil Industry Association continued for a second day. Representatives from both employers and unions declined to predict the outcome.
However, previous threats of oil worker strikes have triggered government intervention, which has averted a serious disruption to supplies. Analysts said with oil prices near $60 a barrel and supplies very tight, unions have greater leverage on wage demands.
Crude prices hit a nominal all-time high $59.70 before easing in later trade. July West Texas Intermediate settlled 47 cents lower at $58.90 a barrel on the New York Mercantile Exchange. It hit a record of $59.52 in the previous session.
With the expiry of the July contract, focus has switched to the August contract, which takes over as the front-month contract from today. August WTI slipped 43 cents to $59.45 a barrel, while WTI contracts deliverable from September to next April were all trading at around $60 a barrel.
In London, IPE Brent for August delivery fell 82 cents to $57.80 a barrel by the end of the session. August Brent hit a record high in nominal terms of $58.58 on Monday.
The fall in crude futures came ahead of Wednesday’s release of US weekly inventory data. Some analysts are forecasting a further fall in crude inventories, which would make it the third consecutive week that US crude stockpiles have dropped. This would add to concerns that the stockpile build seen this spring might not be sufficient for the expected increase in demand this winter.
UK natural gas prices jumped on an unplanned pipeline closure by BP in the Forties field. Winter 2005 gas prices were at 68.60p per therm, up 0.5p on the day. This rise helped pushed carbon dioxide allowances to a record €23 a tonne.
Copper prices consolidated in quiet trade, having hit a high on Monday on concerns about low global inventories of the metal. The three-month copper price ended $2 lower at the end of open outcry trading on the London Metal Exchange.
Gold prices slipped to $437.40/$438.10 a troy ounce, as investors took profits after bullion hit a three-month high of $441 Monday.
“We believe that further profits should be booked here as the rally is looking long in the tooth,” said John Reade, UBS analyst.
Platinum prices eased, falling to $879/$883 a troy ounce from a 14-month high of $900 on Monday.
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