NYMEX oil ends at record atop $76 on Mideast conflict
(Updates with settlement prices)
NEW YORK, July 13 (Reuters) - U.S. crude oil futures ended
at a record above $76 on Thursday as violence between Israel and
Lebanon escalated in the Middle East and geopolitical tensions
boiled elsewhere, raising fears of supply disruptions.
Israel blockaded Lebanese ports and struck three airports,
escalating its reprisals for Hizbollah's capture of two Israeli
soldiers and killing of several others in a raid the day
before.
Suspected pipeline explosions in OPEC member Nigeria also
stoked supply worries, while Iran's nuclear dispute with the
West appeared headed to the U.N. Security Council, raising the
possibility of sanctions against Tehran which could lead to a
disruption in Iranian oil exports.
Tension over North Korea continued as Japan pushed for a
vote this week on its resolution in the council imposing
weapons-related sanctions on Pyongyang, despite China's threat
to veto the draft, following North Korea's missile tests.
Crude for August delivery <CLQ6> settled up $1.75, or 2.3
percent, at $76.70 per barrel, a record, after rising to $76.85
which marked the highest for a front-month contract since the
New York Mercantile Exchange started trading oil futures in
March 1983. Prices rose for the third day in a row.
And crude for April delivery hit $80 a barrel, the highest
ever for any monthly contract traded on the NYMEX.
In London, August Brent crude <LCOQ6> soared $2.30, or 3.1
percent, to $76.69, after setting a record at $76.95.
"A veritable Chinese menu of global tensions and
conflagrations has pushed crude oil prices to record highs" and
beyond, said Addison Armstrong, manager of exchange-traded
markets at TFS Energy in Stamford, Connecticut.
"With trouble and violence seemingly breaking out all over
the place, the futures bulls can no longer restrain themselves
-- and there are fewer bears to stand firm," said an analyst in
Houston.
NYMEX August gasoline <HUQ6> settled up 4.54 cents, or 2
percent, at $2.3013 a gallon, after rising to $2.315 to mark the
priciest in more than nine months. August RBOB <RBQ6> gained
1.81 cents, or 0.8 percent, at $2.3856.
August heating oil <HOQ6> settled 6.15 cents higher, or 3
percent, at $2.0799 a gallon on fund buying after hitting a
two-month high of $2.1050.
"Heating oil is the only contract that hasn't broken out of
the range recently, looking cheap compared to the rest of the
complex," said a U.S. trader to explain the rash of heating oil
buying.
Aiding the contract's surge was news that the high price of
heating oil in Europe was attracting shipments of the product
from the U.S. [nL13857464]
Israel blockaded Lebanese ports and struck three airports as
it intensified reprisals after Lebanese Hizbollah fighters
captured two Israeli soldiers and killed eight others a day
earlier.
Hizbollah rained rockets on northern Israel. One rocket hit
Haifa, Israel's third-largest city, the Israeli Army said.
However, Hizbollah said it did not fire a rocket at that city.
Meanwhile, Iranian President Mahmoud Ahmadinejad said
Thursday the world's fourth-largest oil exporter would not
abandon its right to nuclear technology after Tehran's case was
referred back to the U.N. Security Council.
North Korea blamed the South for the collapse of their first
high-level talks since Pyongyang's missile tests sparked a
regional crisis, saying Seoul would "pay a price" for the
failure.
Japan, meanwhile, pushed for a vote this week on its
resolution in the council imposing weapons-related sanctions on
Pyongyang, despite China's threat to veto the draft.
In Nigeria, two suspected explosions at a crude pipeline
operated by Agip caused oil spills, Nigerian officials said. The
company denied reports of sabotage and extensive oil spills and
said damage would be repaired soon.
Qatari Oil Minister Abdullah al-Attiyah blamed geopolitical
tensions for the surge to record highs.
"The main thing is that we see that there is no shortage in
the market at all," he told reporters. "Speculators are using
the geopolitical situation to their benefit and we are seeing
how the oil prices are reacting."
The record oil price came after Wednesday's U.S. government
report showed domestic crude stocks fell by an unexpected 6
million barrels to 335.3 million barrels last week as imports
dropped by 920,000 barrels per day.
Gasoline inventories dipped 400,000 barrels to 212.7 million
barrels as demand stayed strong at 9.62 million bpd.
Distillate supplies rose 2.6 million barrels to 129.9
million barrels, amid higher production and imports.
TECHNICALS
NYMEX crude's resistance was put at $77 with support at
$74.
Gasoline resistance yielded at $2.30, with the next target
at $2.37, the Sept. 29, 2005, high. Support lies at $2.20.
Heating oil resistance crumbled at $2.05, with the next goal
at $2.108, the May 11, high. Support is at $2.
The gasoline crack spread <CL-HU1=R> ended at $19.95.
The NYMEX crude oil forward curve remained in contango, with
the January contract <CLF7> ending at $79.84.
((Reporting by Gene Ramos; editing by Matthew Lewis
