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Oil hits new high on output fears
Simon English, Evening Standard22.04.08
Oil prices rose to another new record today on fears that Russia and Nigeria will produce less this year.
A jump in demand from China and the threat of a Scottish refinery strike also induced investors to keep betting oil prices will rise.
Crude for May delivery rose 57 cents to $118.05 on the New York Mercantile Exchange. In London, Brent crude added 60 cents to $115.03 - both numbers are all-time highs.
Russia, the largest producer outside Opec, admitted it will pump less this year than last. Analysts say output from Nigeria is likely to fall because of a lack of investment in its facilities.
Unions plan a strike at Grangemouth, where North Sea crude is refined. Analysts say the market is sensitive to any suggestion supplies could be disrupted.
Opec is so far resisting calls to increase production, claiming there is enough oil to meet demands. It blames speculators for driving the price ever higher.
Oil companies say high prices - and profits - are needed for exploration of new sources.
