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Gasoil Futures Rise to Record in London on Concern Over Tight Oil Supply
Aug. 3 (Bloomberg) -- Gasoil futures in London rose to a record for the sixth day in seven trading sessions on concern OPEC production won't be able to meet rising demand for energy. Crude prices, which passed $44 a barrel in New York, have been near record highs for the past two weeks. Gasoil, which in July averaged more than $350 a metric ton, has risen on supply concern, continued strong demand and alerts about possible terrorist attacks in the U.S. The August contract rose $6 to $378.25 a metric ton on the International Petroleum Exchange in London at 5:37 p.m. The price is now 5 percent above the previous high, which occurred in October 1990 when the Iraqi military occupied Kuwait. European demand for gasoil, which can be refined into diesel, has caused some shipments of the product to move there from the U.S. The 60,000-ton ship Difko Chaser was loaded July 27 to take gasoil from the U.S. Gulf Coast to European markets, according to Bloomberg data. ``Prices are so high that they can open up different types of arbitrage,'' said Francis Riley, an oil-products trader with Saras SA in Milan. ``Obviously, it's hitting the consumer at the moment.'' The president of the Organization of Petroleum Exporting Countries, Purnomo Yusgiantoro of Indonesia, told reporters in Jakarta today that Saudi Arabia can't raise output immediately to bring down oil prices and that prices are ``crazy.'' An unidentified Saudi official later said the country can pump as many as 1 million extra barrels a day if needed. Crude oil for September delivery gained 42 cents to $40.40 a barrel in London. Crude oil has 38 percent in the past year. To contact the reporter on this story: Bill Murray in London at at wmurray1@bloomberg.net To contact the editor responsible for this story: Posted by: Mark Espinola 2004-08-03 |
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