Published: May 17 2007 11:54 | Last updated: May 17 2007 11:54
Speculation over supply shortages of US gasoline drove oil prices higher on Thursday as maintenance reduced refinery runs at two Conoco-Phillips plants.
By late morning in London, ICE Brent crude for July delivery was up 87 cents at $68.84 a barrel, while Nymex crude for June gained 49 cents to $63.04 a barrel.
Demand for gasoline peaks in US during the so-called driving season, which starts on the Memorial Day holiday in late May. In the run up to this period, news of any refinery problems can lead to spikes in the price of gasoline, and with it, crude prices too.
Conoco-Phillips reported that maintenance at its 229,000 barrels-per-day processor in Texas and its 194,000 bpd Oklahoma site had reduced output.
Meanwhile, tensions in Nigeria between oil producers and local residents in the oil-rich Niger Delta have led to closures and falling supply from the region.
By late morning in London, the Nymex June RBOB gasoline futures contract rose nearly 3 cents to 2.3665 a gallon.
”We don’t think we have seen the last of the current gasoline spiral, and could very well see one more significant spike higher during the new few weeks,” said Edward Meir at Man Financial.
Forecasts of cold weather in Brazil lifted London robusta coffee futures to an eight-year high, following a spike in New York arabica futures.
July robusta in London hit a high of $1,718 a tonne, and by late morning stood $13, or 0.8 per cent, higher at $1,705 a tonne.
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