World oil prices jumped above $61 per barrel on Monday, mainly on concerns about possible supply shortages during the fourth quarter, as markets shrugged off the death of King Fahd of Saudi Arabia.
New York’s main contract, light sweet crude for delivery in September, climbed 45 cents to $61,02 per barrel in electronic dealing after a intraday peak of $61,23.
In London, the price of Brent North Sea crude oil for delivery in September gained 61 cents to $59,98 per barrel.
”The main focus is still on refinery problems, with BP at the weekend closing a gasoline, or petrol, unit at the Texas City refinery,” analysts at the Sucden brokerage firm said.
A fire hit the refinery in the southern United States last Thursday, causing New York’s oil price to hit $61 dollars on Friday for the first time since July 13.
Refineries are working flat out to produce enough heating fuel in time for the northern-hemisphere winter later this year. Oil futures reached a record $62,10 per barrel in New York and $60,70 in London on July 7 in the wake of fatal bombings in London.
BP on Monday said that the Schiehallion oil platform off the West Shetland Islands remained shut following a fire last Friday.
A BP spokesperson said the company is ”looking at days, not weeks” for repairs to finish and production to resume on the platform operated by the company. The fire at Schiehallion, which produces about 120 000 barrels of oil per day, did not cause any spillage and nobody was injured, he added.
The Shetlands, which form part of Britain, are situated more than 480km north of Edinburgh.
Traders, meanwhile, digested news of the death of King Fahd, whose country is the world’s biggest oil exporter. They said the king’s death on Monday was providing a little support for prices and that exports from the kingdom were unlikely to be disrupted.
”It certainly won’t change the Saudis’ view on how to export,” one London trader said. The internal politics might change a bit, but on the oil side I don’t think there is going to be a change at all.”
King Fahd, who was believed to be 84, had been ill for many years.
Following his death, a senior Saudi oil official said Saudi Arabia will maintain output at levels required to ensure market stability.
Saudi Arabia currently produces about 9,5-million barrels per day with the capacity for an additional 1,5-million barrels per day.
Abdullah bin Abdul Aziz, the popular crown prince of Saudi Arabia, has been named ruler of the kingdom following the passing of his half-brother. — Sapa-AFP