Benchmark crude oil futures fell slightly yesterday, but still hovered near their record overnight closing price, as traders worried about future oil production from Saudi Arabia after the death of King Fahd.
More threats from Iran to resume its nuclear processing and refinery fires in the US also supported prices.
Midafternoon in Singapore, light, sweet crude on the New York Mercantile Exchange was down US$0.16 to US$61.41 a barrel for the front-month September contracts. It had risen US$1 to close at US$61.57 following news of Fahd's passing and spiked to an all-time intra-day record of US$62.30 a barrel in New York floor trading.
Both were new highs for crude on the Nymex since oil began trading on the exchange in 1983, but prices would have to surpass US$90 to reach the all-time inflated-adjusted high in 1980.
Brent futures for next month on London's International Petroleum Exchange opened US$0.01 up from Monday's US$60.44 a barrel close, then slipped to US$60.35 a barrel.
Saudi Arabia is the world's largest exporter of crude and sits on a quarter of the world's oil reserves.
While oil policy is not expected to change, with oil consumption rising around the world and only a limited amount of excess production capacity available, energy traders are easily put on edge by any geopolitical change, perceived uncertainty or weather patterns in producing regions.
"The question is who will follow them as next in line to become absolute monarch of the world's biggest oil producer," said Energyintel analyst Jane Collin, referring to Abdullah and Sultan. As in neighboring Kuwait, where both the ruler and his heir are in their late 70s, there is no established system for handing over to a younger generation.
"The potential for bitter infighting is already triggering concern about future stability in the oil-rich region," she said.
Traders also are nervous about Iran's plans to resume uranium reprocessing, which is firmly opposed by Washington. Tensions between the world's largest energy consumer and Iran, the No.2 producer within the OPEC cartel, worry oil markets because Tehran has the ability to cripple markets by shutting off its taps. Iran produces about 4 million barrels daily.
Fires last week at a Murphy Oil Corp 120,000 barrel-a-day Meraux refinery in Louisiana and a BP PLC 437,000 barrel-a-day plant in Texas City were the catalyst for prices to move above US$60.
Such shutdowns play into fears that refiners may not be able to catch up with demand, especially during the fourth quarter of the year.
EXPRESSING GRATITUDE: Without its Taiwanese partners which are ‘working around the clock,’ Nvidia could not meet AI demand, CEO Jensen Huang said Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) and US-based artificial intelligence (AI) chip designer Nvidia Corp have partnered with each other on silicon photonics development, Nvidia founder and CEO Jensen Huang (黃仁勳) said. Speaking with reporters after he met with TSMC chairman C.C. Wei (魏哲家) in Taipei on Friday, Huang said his company was working with the world’s largest contract chipmaker on silicon photonics, but admitted it was unlikely for the cooperation to yield results any time soon, and both sides would need several years to achieve concrete outcomes. To have a stake in the silicon photonics supply chain, TSMC and
SILICON VALLEY HUB: The office would showcase Taiwan’s strengths in semiconductors and artificial intelligence, and help Taiwanese start-ups connect with global opportunities Taiwan has established an office in Palo Alto, one of the principal cities of Silicon Valley in California, aimed at helping Taiwanese technology start-ups gain global visibility, the National Development Council said yesterday. The “Startup Island Taiwan Silicon Valley hub” at No. 299 California Avenue is focused on “supporting start-ups and innovators by providing professional consulting, co-working spaces, and community platforms,” the council said in a post on its Web site. The office is the second overseas start-up hub established by the council, after a similar site was set up in Tokyo in September last year. Representatives from Taiwanese start-ups, local businesses and
‘DETERRENT’: US national security adviser-designate Mike Waltz said that he wants to speed up deliveries of weapons purchased by Taiwan to deter threats from China US president-elect Donald Trump’s nominee for US secretary of defense, Pete Hegseth, affirmed his commitment to peace in the Taiwan Strait during his confirmation hearing in Washington on Tuesday. Hegseth called China “the most comprehensive and serious challenge to US national security” and said that he would aim to limit Beijing’s expansion in the Indo-Pacific region, Voice of America reported. He would also adhere to long-standing policies to prevent miscalculations, Hegseth added. The US Senate Armed Services Committee hearing was the first for a nominee of Trump’s incoming Cabinet, and questions mostly focused on whether he was fit for the
SHARED VALUES: The US, Taiwan and other allies hope to maintain the cross-strait ‘status quo’ to foster regional prosperity and growth, the former US vice president said Former US vice president Mike Pence yesterday vowed to continue to support US-Taiwan relations, and to defend the security and interests of both countries and the free world. At a meeting with President William Lai (賴清德) at the Presidential Office in Taipei, Pence said that the US and Taiwan enjoy strong and continued friendship based on the shared values of freedom, the rule of law and respect for human rights. Such foundations exceed limitations imposed by geography and culture, said Pence, who is visiting Taiwan for the first time. The US and Taiwan have shared interests, and Americans are increasingly concerned about China’s
RSS