Crude oil prices surged to a new high yesterday on supply concerns ahead of the coming winter, a possible petroleum-industry strike in Norway and data showing that China's big demand for oil is likely to increase.
The price of crude futures for December hit a high of US$55.58 yesterday afternoon in Asian hours electronic trade on the New York Mercantile Exchange, up US$0.41 from its record close Friday when the US Energy Department reported a fifth straight fall in heating oil stocks.
It was also an intra-day record.
November heating oil hit new record high of US$1.6030 per gallon (3.8 liters) on Friday. It was US$1.5990 mid-afternoon yesterday in Asia.
New on the watchlist of supply worries was an announcement by the Norwegian Shipowners Association of a lockout affecting workers on nearly 100 offshore service vessels and shuttle tankers on the Norwegian continental shelf.
The strike is set to take effect Nov. 8, and threatens to shut down the production of oil and gas in the world's third-largest supplier within a week, Dow Jones Newswires reported yesterday.
Norway produces at least 3 million barrels of crude daily and is a crucial supplier of natural gas and distillate fuel.
Fears of a cold Northern Hemisphere winter have further stoked the price of crude and heating oil, with dwindling stocks also being reported in Western Europe and Japan.
Demand for jet fuel -- kerosene and additives -- also typically rises during the Christmas season because of extra flights for the holiday, which adds even more pressure.
Analysts and traders said they also were on the lookout for increasing demand from China, which on Friday released its third-quarter economic growth figures showing GDP climbing a blazing 9.1 percent on year and 9.5 percent for the first three quarters of the year.
"China, that's the bullish factor but immediately there is concern over the lockout in Norway adding to the Chinese [economic] reports. There doesn't seem to be any end to price rises," said Esa Ramasamy, oil editorial manager for energy reporting agency Platts.
SLOW-MOVING STORM: The typhoon has started moving north, but at a very slow pace, adding uncertainty to the extent of its impact on the nation Work and classes have been canceled across the nation today because of Typhoon Krathon, with residents in the south advised to brace for winds that could reach force 17 on the Beaufort scale as the Central Weather Administration (CWA) forecast that the storm would make landfall there. Force 17 wind with speeds of 56.1 to 61.2 meters per second, the highest number on the Beaufort scale, rarely occur and could cause serious damage. Krathon could be the second typhoon to land in southwestern Taiwan, following typhoon Elsie in 1996, CWA records showed. As of 8pm yesterday, the typhoon’s center was 180km
TYPHOON DAY: Taitung, Pingtung, Tainan, Chiayi, Hualien and Kaohsiung canceled work and classes today. The storm is to start moving north this afternoon The outer rim of Typhoon Krathon made landfall in Taitung County and the Hengchun Peninsula (恆春半島) at about noon yesterday, the Central Weather Administration (CWA) said, adding that the eye of the storm was expected to hit land tomorrow. The CWA at 2:30pm yesterday issued a land alert for Krathon after issuing a sea alert on Sunday. It also expanded the scope of the sea alert to include waters north of Taiwan Strait, in addition to its south, from the Bashi Channel to the Pratas Islands (Dongsha Islands, 東沙群島). As of 6pm yesterday, the typhoon’s center was 160km south of
STILL DANGEROUS: The typhoon was expected to weaken, but it would still maintain its structure, with high winds and heavy rain, the weather agency said One person had died amid heavy winds and rain brought by Typhoon Krathon, while 70 were injured and two people were unaccounted for, the Central Emergency Operation Center said yesterday, while work and classes have been canceled nationwide today for the second day. The Hualien County Fire Department said that a man in his 70s had fallen to his death at about 11am on Tuesday while trimming a tree at his home in Shoufeng Township (壽豐). Meanwhile, the Yunlin County Fire Department received a report of a person falling into the sea at about 1pm on Tuesday, but had to suspend search-and-rescue
RULES BROKEN: The MAC warned Chinese not to say anything that would be harmful to the autonomous status of Taiwan or undermine its sovereignty A Chinese couple accused of disrupting a pro-democracy event in Taipei organized by Hong Kong residents has been deported, the National Immigration Agency said in a statement yesterday afternoon. A Chinese man, surnamed Yao (姚), and his wife were escorted by immigration officials to Taiwan Taoyuan International Airport, where they boarded a flight to China before noon yesterday, the agency said. The agency said that it had annulled the couple’s entry permits, citing alleged contraventions of the Regulations Governing the Approval of Entry of People of the Mainland Area into the Taiwan Area (大陸地區人民進入台灣地區許可辦法). The couple applied to visit a family member in
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