Oil Near $108 After Saudi Explosion Report Denied

World oil prices moved narrowly in both directions on Friday one day after sizzling Iran tensions had sent the market surging to the highest levels for more than nine months.Brent North Sea crude for delivery in April gained six cents to $123.68 per barrel in London morning deals. New York's main contract, light sweet crude for April, eased 55 cents to $108.38."We expect some consolidation for Brent near current highs," said VTB Capital oil analyst Andrey Kryuchenkov.

Brent crude will hover around US$100 a barrel for the next two years, a Reuters poll showed after analysts slashed their forecasts for the oil price to reflect ample supply and sluggish economic growth. Brent crude oil will average US$107.60 per barrel this year, Reuters monthly oil price survey for April predicted on Tuesday, down from US$110.80 in last month’s poll and below last year’s average price of US$111.70.

NEW YORK: The dollar pared gains after hitting an 8-1/2-month high against major currencies on Monday, while the prospect of further European Central Bank stimulus dragged the euro, and oil futures fell on worries about a growing supply glut. Global stock markets were mixed, with Wall Street ending the session lower ahead of a crucial payroll report Friday, while European shares finished higher. The three major US indexes ended November higher for a second straight month.

China plans to build a gas pipeline that will connect the rich of natural gas South China Sea with the Pearl River Delta. Yesterday shares of Power Grid Ltd lost near 15%. Today following gains on Wall Street and the S&P500 benchmark, the Asian market also started on green. Today oil futures advanced further reaching 4% increase for the week.  

World oil prices fell slightly on Wednesday as traders awaited the weekly US energy inventories report.New York's main futures contract, light sweet crude for April delivery slid 23 cents to 78.63 dollars a barrel.London's Brent North Sea crude for April delivery reversed 22 cents to 77.03 dollars per barrel.The US government's Department of Energy (DoE) will later publish its traditional weekly snapshot of American crude inventories for the week ending February 19.

By Grant Smith Oil rose in New York, halting a five-day declining streak, as Saudi Arabia’s comments on stronger demand countered signs that U.S. supplies will keep rising. West Texas Intermediate futures gained as much as 0.8%, reversing an earlier decline. Oil demand is growing and the market has turned “calm,” Saudi Arabia’s Oil Minister Ali Al-Naimi said. U.S. crude inventories probably rose by 4 million barrels last week, a Bloomberg News survey shows before an Energy Information Administration report Wednesday.

Cost inflation and oil sands development seem to go hand in hand, as demand for the resource spurs new and expanded projects, taxing materials and labour markets. Yet many in the industry are seeing an easing of inflationary pressures, in part due to lessons learned from the last boom in 2006-2008, and partially due to global influences.