World oil prices closed in on US$142 in Asian trades yesterday, pushed up by continued worries over supply and the weak US currency, dealers said.
In afternoon trade, New York’s main oil futures contract, light sweet crude for delivery next month rose US$1.69 to US$141.90 per barrel after closing on Friday at a record US$140.21.
The contract touched a peak of US$142.99 in intra-day trade in New York on Friday.
Brent North Sea crude for delivery next month gained US$1.57 a barrel to US$141.88. The contract had closed on Friday in London at a record US$140.31 after reaching an intra-day record of US$142.97.
“The bullish trend remains intact once the key US$140 resistance level has been broken,” said Victor Shum, an analyst with Purvin and Gertz energy consultancy in Singapore.
Supply concerns stemming from unrest in major producer Nigeria and geopolitical tensions in the Middle East, as well as the weak US dollar, were the main drivers behind the bullish trend, he said.
“This is really unprecedented ... we are at record prices and this rally in pricing has been sustained over a number of years,” Shum said.
A weak US currency makes goods priced in the US dollar, like oil, more affordable for purchasers armed with stronger currencies, analysts say.
The jump in oil prices, which have doubled in the past year, has sparked protests around the world over fuel costs and fears for economic growth.
The president of the OPEC predicted last week that oil prices could jump even further this year because of the weak dollar and geopolitical unrest.
“I predict probably prices of US$150 to US$170 this summer,” OPEC president Chakib Khelil, also Algeria’s energy minister, said on Thursday in an interview with France 24 television.
Record-breaking prices provide the backdrop for the World Petroleum Congress of key industry players, which began in Madrid on Sunday night.
Dominating the agenda during the four-day congress, held every three years, will be the safeguarding of world oil supplies, balancing supply and demand, the fragile state of reserves and the sudden jump in refined product prices.
The president of OPEC, the head of the International Energy Agency and ministers from Nigeria, Russia, Venezuela, India, France and the Netherlands are expected to be present.
They are to be joined by the bosses of major international oil groups ExxonMobil of the US, CNOOC of China, Britain’s BP and British-Dutch group Shell, Rosneft of Russia and Total of France.
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