Oil prices drop to $118 a barrel

Oil prices drop to $118 a barrel
Comment E-mail Print Share
First Published: Tue, Apr 29 2008. 10 49 AM IST
Updated: Tue, Apr 29 2008. 10 49 AM IST
AP
Singapore: Oil prices fell 29 April amid expectations that a supply disruption in the U.K. would soon be resolved and as the U.S. dollar held its ground against the euro.
Crude futures the previous day rose to a record $119.93 a barrel as labor actions in Nigeria and Scotland threatened crude supplies. But a pipeline that normally carries 700,000 barrels of crude a day to the U.K. is likely to be back in operation soon.
“The Forties pipeline shutdown in the North Sea is fully priced in and the market may be taking some mild profits on the basis that we’ll see a return in the near term,” said Mark Pervan, a senior commodity strategist at the ANZ Bank in Melbourne.
The Forties Pipeline System was shut down by BP PLC because of a 48-hour walkout by employees at a refinery in central Scotland. The refinery powers the onshore processing plant for North Sea crude coming through the network, and once the strike is over later Tuesday, the pipeline system should resume operation within a few days.
Oil prices also retreated from Monday’s record as the dollar stabilized against the euro.
Light, sweet crude for June delivery fell 28 cents to US$118.47 a barrel in Asian electronic trading on the New York Mercantile Exchange by midday in Singapore. The contract settled up 23 cents at US$118.75 a barrel on Monday.
In other Nymex trading, heating oil futures fell 0.38 cent to $3.295 a gallon (3.8 liters) while gasoline prices lost 0.44 cent to $3.0263 a gallon. Natural gas futures fell 11.5 cents to $11.214 per 1,000 cubic feet.
Brent crude futures fell 26 cents to $116.48 a barrel on the ICE Futures exchange by midmorning in Singapore.
Comment E-mail Print Share
First Published: Tue, Apr 29 2008. 10 49 AM IST