Oil prices reached new record highs yet again as the market rallied over concerns of supply. News that the Louisiana Offshore Oil Port (LOOP) had shut for the 3rd time in a month due to bad weather as well as reports that the US Gulf crude production was still 28% below average and possible strikes in Nigeria sent prices to new highs. Technically the market remains in a strong uptrend with the next technical target at $53.90 and WTI needing to close below $50.30 to reverse the trend.

 

Singapore prices were down $0.15/bbl on Friday afternoon as the futures market was dropping at the time from news that the Nigerian strike was off (later refuted). The physical market is still well offered with the high prices appearing to put a dent in the demand for product. However, the paper markets remain well bid in line with futures which is supporting the physical market. Expect Singapore prices to be up $0.60/bbl today.

 

Closing Prices Friday October 8, 2004:

WTI                    $53.31/bbl            +$0.64/bbl

Brent                  $49.71/bbl            +$0.81/bbl

IPE Gasoil          $473.00/t              +$12.50/t = +$1.68/bbl