Oil prices surged past US$67 a barrel in Asian trading yesterday after al-Qaeda leader Osama bin Laden threatened new attacks against the US, dealers said.
Bin Laden's latest threat, which was made in an audiotape broadcast over al-Jazeera television, further fuelled market tensions triggered by potential supply disruptions in major oil producers Iran and Nigeria, they said.
At 7:15am GMT, New York's main contract, light sweet crude for delivery in February, was up US$0.27 at US$67.10 a barrel, the highest in four months, from its close of US$66.83 in the US on Thursday.
"The bin Laden tape has caused a knee-jerk reaction on the part of the market," said Victor Shum, a Singapore-based analyst with the US energy consultancy Purvin and Gertz.
He said speculation by oil traders could push prices to US$70 a barrel, which would be just below the all-time high of US$70.85 on Aug. 30 last year after Hurricane Katrina hammered US oil production facilities in the Gulf of Mexico region.
"There is certainly the possibility [of oil prices hitting US$70]. The recent events have attracted speculators and oil has become a lot like an investment," Shum said.
Meanwhile, the geo-political fallout from Iran's decision to resume sensitive nuclear activities and unrest in Nigeria, Africa's biggest oil producer, remained key ingredients to the market's volatility.
"Geo-politics is behind the surge in oil pricing... The Nigerian unrest has caused a disruption in supply," Shum said.
Anglo-Dutch energy giant Shell, Nigeria's biggest producer and so far the main target of the attacks by separatist militants, has been forced to cut output by 226,000 barrels per day since the crisis began over a week ago.
Iran, the second-biggest crude oil producer in the OPEC cartel, has warned Western powers that sanctions over its controversial nuclear program could provoke a world oil crisis.
The geo-political situation overshadowed the US Department of Energy's report on Wednesday that US energy stockpiles rose across the board in the week ended Jan. 13, news that would normally depress oil prices.
Crude stocks rose 2.7 million barrels over the week to total 321.4 million barrels, it said.
Supplies of distillate products, used to make heating fuel and diesel, rose 900,000 barrels to 134.7 million. Reserves of gasoline, or petrol, were up 2.8 million barrels at 211.6 million.
The Central Weather Administration (CWA) yesterday said it is expected to issue a sea warning for Typhoon Fung-wong this afternoon and a land warning tomorrow. As of 1pm, the storm was about 1,070km southeast of Oluanpi (鵝鑾鼻), Taiwan’s southernmost point, and was moving west-northwest at 28 to 32kph, according to CWA data. The storm had a radius of 250km, with maximum sustained winds of 173kph and gusts reaching 209kph, the CWA added. The storm is forecast to pass near Luzon in the Philippines before entering the South China Sea and potentially turning northward toward Taiwan, the CWA said. CWA forecaster Chang Chun-yao (張峻堯) said
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The Central Weather Administration (CWA) yesterday issued a sea alert for Typhoon Fung-wong (鳳凰) as it threatened vessels operating in waters off the Pratas Islands (Dongsha Islands, 東沙群島), the Bashi Channel and south of the Taiwan Strait. A land alert is expected to be announced some time between late last night and early this morning, the CWA said. As of press time last night, Taoyuan, as well as Yilan, Hualien and Penghu counties had declared today a typhoon day, canceling work and classes. Except for a few select districts in Taipei and New Taipei City, all other areas and city
VIOLATION OF NORMS: China’s CCTV broadcast claimed that Beijing could use Interpol to issue arrest warrants, which the MAC slammed as an affront to order The Mainland Affairs Council (MAC) yesterday condemned the Chinese Communist Party (CCP) for attempts to intimidate Taiwanese through “transnational repression.” The council issued the remarks after state broadcaster China Central Television (CCTV) yesterday during a news broadcast aired a video targeting Democratic Progressive Party (DPP) Legislator Puma Shen (沈伯洋), threatening him with “cross-border repression” and saying: “Stop now, or you will be next,” in what Taipei officials said was an attempt to intimidate not only Shen, but also the broader Taiwanese public. The MAC in a statement condemned the threat, accusing Beijing of trying to instill fear and self-censorship among Taiwanese and
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