Crude traded above $106 per barrel today as Libyan fighting continues, while hedge funds pressured futures to a close high for the second consecutive week due to speculations on oil cuts prevailing.Crude today hovers around $105 per barrel recording its highest around $106.42 and lowest around $104.23, while it currently is trading around $106.14 per barrel.
Traders’ eye the ongoing fighting between Libyan rebel groups and loyal troops for Muammar Gaddafi in several cities over the weekend, while the OPEC nation’s oil output has fallen by at least one million barrels a day from the previous 1.6 MB before the political unrest.
Crude last Friday traded around $104 per barrel recording its highest around $104.91 and lowest around $101.53 per barrel, closing around $104.80 per barrel. Futures skyrocketed last Friday due to ongoing unrest in Libya and now spreading to Saudi Arabia, the world’s largest crude exporter, which has previously agreed to pump more oil to cover the shortage caused by Libya’s cuts; thus, leading to the sudden boost in oil prices which could eventually threaten global growth.
Moreover, hedge funds have recently raised purchasing of futures to record highs in two consecutive weeks; following speculations on crude cuts continuing as Mid-East political unrest spreads.
As for NYMEX as of 05:07 EST; motor gasoline rose $0.81 recording $307.100 per gallon; heating is trading around $311.180 per gallon inclining $0.73; whereas natural gasoline shed $1.42 to record $3.755. In London, Brent futures gained $1.10 to record $117.240.