Oil Mining Trading and Market : U.S. Crude Rose 26 cents to $92.03 a Barrel | Mining Exploration News
Oil firmed near $92 a barrel on Monday, supported by Venezuela’s threat to stop sending oil to the world’s top fuel consumer the United States.
Venezuelan President Hugo Chavez made the threat on Sunday, after an Exxon Mobil (XOM.N) lawsuit froze $12 billion of Venezuelan assets to step up Exxon’s push for compensation from a nationalized oil project.
“We do not believe that there is any serious risk to oil supplies, but with the increased rhetoric we would be cautious before concluding that this development should be already fully discounted,” said Olivier Jakob at Petromatrix.
U.S. crude rose 26 cents to $92.03 a barrel by 1300 GMT. It earlier climbed as high as $92.71, matching its January 30 peak, the highest point since January 15. London Brent eased 11 cents to $91.83.
Oil jumped more than 4 percent on Friday, the biggest gain in nearly two months, as production problems in the North Sea and Nigeria pushed aside fears that a U.S. recession would hurt fuel demand.
Chavez has frequently issued conditional threats to stop shipments to the United States, but has maintained supplies despite repeated clashes with Washington.
“If you freeze us, if you really manage to freeze us, if you damage us, then we will hurt you. Do you know how? We are not going to send oil to the United States, Mr. Bush, Mr. Danger,” Chavez said on his weekly TV show.
Actual supply disruptions also added support. In Nigeria, Royal Dutch Shell (RDSa.L) said last week it had halted 130,000 barrels per day of output because of pipeline leaks.
Separately, Russian gas export monopoly Gazprom pledged to cut some gas to Ukraine from Tuesday morning if Ukraine does not settle a $1.5 billion debt for earlier supplies. Russia supplies a quarter of Europe’s gas mainly via Ukraine.
Dealers said the rebound from last Thursday’s low of $86.24 — near the lowest in three and a half months — was aided by traders buying back short positions built up as the market fell from its January 3 record high of $100.09.
Crude speculators on the New York Mercantile Exchange cut net long positions again last week, according to data from the Commodity Futures Trading Commission released on Friday.
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