As oil sectors have just recently been making a comeback-This may be further incentive to consider ABRG as an investment/trade opportunity as ABRG in their PR's are making progress in acquistions and exploration. Newbies can still (again) get in near support for a speculative opportunity in the oil and gas industry. I add to my portfolio every time we dip back to the low .04's.
(REUTERS) FOCUS-Oil hits $21, highest for almost two years
FOCUS-Oil hits $21, highest for almost two years
(updates with Brent at $21)
LONDON, Aug 13 (Reuters) - Oil prices rallied to a 22-month
peak of $21 a barrel on Friday, buoyed by Nigerian supply
disruption, declines in U.S. oil stockpiles and OPEC output
restraint.
London September futures for Britain's Brent crude touched
the psychological $21 level, its highest since October 9, 1997,
before dropping back to $20.88 for a 39 cent gain.
The price of oil is more than double the historic lows
touched at the turn of the year following disciplined reductions
in supply under a market rescue accord by the Organisation of
the Petroleum Exporting Countries.
Dealers said data this week from the United States
showing falling inventories of crude and petroleum products had
underlined the success of OPEC producers in tackling a glut
which early this year dragged Brent below $10 a barrel.
Crude oil stocks in the United States, the world's largest
consumer, now are six percent lower than a year ago while
gasoline inventories are four percent smaller.
The price drew more immediate strength on Friday from news
that oil major Texaco declared force majeure on some Nigerian
oil exports, meaning it cannot guarantee meeting all of its
sales commitments, due to community unrest in the Niger Delta.
Output curbs implemented by OPEC after a meeting in the
Hague in March are expected to erase excess inventories entirely
in coming months.
Nevertheless, traders are concerned that prices may be due
for a reverse after the heavy gains of recent weeks.
"Scepticism has emerged about future price trends which we
attribute to concern that OPEC will raise its production at the
September 22 meeting," said banker Merrill Lynch.
"We continue to believe that this will not occur and that
OPEC will reaffirm its commitment to the Hague agreement," the
bank said in a note to clients.
On Monday, Venezuelan Energy and Mines Minister Ali
Rodriguez said he did not expect any change in OPEC's production
policy when the group meets next month.
The cartel has agreed to maintain supply curbs for a year
until the end of March which may a leave a shortfall in supplies
during winter months.
The Paris-based International Energy Agency said this week
that world oil demand was expected to accelerate next year,
while only marginal extra supplies would emerge from non-OPEC
producers.
It said a recovery in Asian economies would help double
global demand growth from 900,000 barrels a day this year to 1.8
million bpd in 2000. It expected only 660,000 bpd of extra
non-OPEC supply.
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