Oil prices continued to rise yesterday on the impact of Hurricane Ivan in the US Gulf. The storm has resulted in the shutdown of about 1 million barrels per day of crude production from the US Gulf. Traders are also betting that US inventories will be lower again for the seventh straight week on the data to be released tonight. Technically the market has once again started a short term uptrend. Trading on after hours ACCESS has WTI up another $0.35/bbl this morning.

 

Singapore prices surged on the back of aggressive bidding in the physical markets as well as the swaps markets. Hin Leong continues to buy up the gasoil market whilst BP continues to bid up the kero market although kero went back to a discount due to being well offered. However, BP then the banks bid up the regrade by more than $1.40/bbl despite the physical market showing gasoil being stronger. The net impact was that Singapore kero increased nearly $1.50/bbl. Expect Singapore prices to be up alt least $0.30 per barrel this morning.

 

Closing Prices Tuesday September 14, 2004:

WTI                     $44.39/bbl            +$0.52/bbl

Brent (Oct)           $41.73/bbl            +$0.67/bbl (contract expires tonight)

Brent (Nov)           $41.18/bbl

IPE Gasoil           $392.50/t              +$7.25/t = +$0.97/bbl