Oil prices rose above US$126 in Asian trade yesterday amid fresh worries about Iran’s disputed nuclear program and a new storm brewing in the Gulf of Mexico, dealers said.
In afternoon trade, New York’s main contract, light sweet crude for delivery next month, jumped US$0.96 to US$126.06 a barrel from its close of US$125.10 on Friday. Brent North Sea crude for delivery next month was up US$1 at US$125.18.
“It’s Iran again ... the Iranian issue remains fluid and it looks like more sanctions will be imposed by the world powers and they will likely raise tensions over Iran,” said Victor Shum, a Singapore-based analyst at Purvin and Gertz.
Iran is the fourth largest crude oil producer in the world and traders fear supply disruptions from the Islamic republic if tensions between Tehran and the West heighten over its controversial nuclear program.
Tensions over Iran’s nuclear program pushed oil prices to above US$147 last month.
Meanwhile, a new storm brewing in the Gulf of Mexico, where key US energy facilities are located, is adding to supply jitters, dealers said.
Tropical Storm Edouard is expected to be very near the southwestern coast of Louisiana and the upper Texas coast by late today.
“Some reports are saying much of the US offshore oil production facilities are in the likely path of the storm but it is a little too early to say what the direction of the storm is going to be,” Shum said.
Nigeria, a key crude producer, is also fueling supply concerns as local police and French officials confirmed on Sunday two French nationals were kidnapped in the oil-rich Niger Delta region.
Violence in the southern region has reduced Nigeria’s total oil production by a quarter since January 2006.
Nigeria was Africa’s largest oil producer until it was overtaken in April by Angola, OPEC data showed.
In related news, Global Energy Development PLC, a UK-based explorer in Latin America, found oil during a test at the Tilodiran 3 well in the Colombian Rio Verde contract.
The well was drilled to a depth of about 4,000m and oil from the so-called Ubaque formation flowed at 322 barrels a day, the London-based company said in a statement distributed by the Regulatory News Service yesterday.
The company said it would test two other formations in the well over the next week.
RETHINK? The defense ministry and Navy Command Headquarters could take over the indigenous submarine project and change its production timeline, a source said Admiral Huang Shu-kuang’s (黃曙光) resignation as head of the Indigenous Submarine Program and as a member of the National Security Council could affect the production of submarines, a source said yesterday. Huang in a statement last night said he had decided to resign due to national security concerns while expressing the hope that it would put a stop to political wrangling that only undermines the advancement of the nation’s defense capabilities. Taiwan People’s Party Legislator Vivian Huang (黃珊珊) yesterday said that the admiral, her older brother, felt it was time for him to step down and that he had completed what he
Taiwan has experienced its most significant improvement in the QS World University Rankings by Subject, data provided on Sunday by international higher education analyst Quacquarelli Symonds (QS) showed. Compared with last year’s edition of the rankings, which measure academic excellence and influence, Taiwanese universities made great improvements in the H Index metric, which evaluates research productivity and its impact, with a notable 30 percent increase overall, QS said. Taiwanese universities also made notable progress in the Citations per Paper metric, which measures the impact of research, achieving a 13 percent increase. Taiwanese universities gained 10 percent in Academic Reputation, but declined 18 percent
UNDER DISCUSSION: The combatant command would integrate fast attack boat and anti-ship missile groups to defend waters closest to the coastline, a source said The military could establish a new combatant command as early as 2026, which would be tasked with defending Taiwan’s territorial waters 24 nautical miles (44.4km) from the nation’s coastline, a source familiar with the matter said yesterday. The new command, which would fall under the Naval Command Headquarters, would be led by a vice admiral and integrate existing fast attack boat and anti-ship missile groups, along with the Naval Maritime Surveillance and Reconnaissance Command, said the source, who asked to remain anonymous. It could be launched by 2026, but details are being discussed and no final timetable has been announced, the source
CHINA REACTS: The patrol and reconnaissance plane ‘transited the Taiwan Strait in international airspace,’ the 7th Fleet said, while Taipei said it saw nothing unusual The US 7th Fleet yesterday said that a US Navy P-8A Poseidon flew through the Taiwan Strait, a day after US and Chinese defense heads held their first talks since November 2022 in an effort to reduce regional tensions. The patrol and reconnaissance plane “transited the Taiwan Strait in international airspace,” the 7th Fleet said in a news release. “By operating within the Taiwan Strait in accordance with international law, the United States upholds the navigational rights and freedoms of all nations.” In a separate statement, the Ministry of National Defense said that it monitored nearby waters and airspace as the aircraft