Crude Rallies as Market Wary of Tensions in Opec Countries

Oil Daily, The, August, 2003

Oil prices soared to a two-month high on another technical rally Tuesday, although news of a car bombing in Indonesia, the delay in the return of oil in Iraq, and ethnic tensions in Nigeria renewed concerns that instability in oil-rich Opec countries could disrupt supply and exacerbate the already tight inventory situation.

In the New York Mercantile Exchange (Nymex), light, sweet crude shot up 38cents to settle at $32.22 per barrel, after reaching a daily high of $32.48/bbl, just shy of the Jun. 11 high of $32.50/bbl. On the International Petroleum Exchange in London, Brent closed 40cents higher to $29.93/bbl.

"No particular headlines led the market," said Mike Fitzpatrick of Fimat. "A combination of technical buying, longs by the funds, and speculative...