Another Feared Brent Squeeze Sends Shock Across Energy

Oil Daily, The, February, 2002

Another Feared Brent Squeeze Sends Shock Across Energy Complex

Barely has US trader Sempra's grip on February dated Brent eased before Royal Dutch/Shell takes its turn, lobbing another grenade into the market for the key benchmark crude, moving traders to run for cover and sending ripples through crude markets across the globe.

Crude prices on both sides of the Atlantic fell on Tuesday (see story,p3), reversing much of Monday's last-minute rally that was fueled by reports that the Anglo-Dutch giant intends to gobble up all available Brent cargos in March. Shell's own traders helped spread the word Monday night and a Shell executive admitted Tuesday that the company sees "potential demand for all the Brents in March."

Shell's stated intentions sent...