Oil rises over $70 on another attack in Nigeria and China boosting reserves
By Daniel at 29 June, 2009, 7:36 pm
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Oil jumps above $71 as China looks to boost resrves, Nigeria rebels attack Shell platform
SIOUX FALLS, South Dakota (AP) — Oil prices settled above $71 a barrel Monday, as China said it would boost oil reserves and Nigerian militants partly shut down an offshore oil platform belonging to Royal Dutch Shell PLC.
Benchmark crude for August delivery gained $2.33 to settle at $71.49 a barrel on the New York Mercantile Exchange.
Alaron Trading Corp. analyst Phil Flynn said China’s plans to increase its strategic crude oil reserves by 60 percent should provide the market with some long-term support.
Shell spokesman Precious Okolobo confirmed the Nigeria attack and partial shutdown. Previous militant attacks on infrastructure in the country’s restive southern oil region have trimmed output in Africa’s biggest crude producer by about 25 percent.
Jim Ritterbusch, president of energy consultancy Ritterbusch and Associates, said a barrel of oil has been hovering around where it started the month, and he expects the trend of sideways trading will likely continue. Volume is typically low in the days leading up to a holiday weekend.
http://finance.yahoo.com/news/Oil-settles-above-71-China-to-apf-2774808596.html?x=0&.v=11
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OPEC’s record production cuts are draining the glut in world oil markets, leading traders to bet that $50 crude is two months away.
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