World crude prices rose strongly today on the news that bad weather had interrupted oil supplies at Alaska's key export terminal. Traders were also looking ahead to tomorrow's weekly update on crude oil reserves in the US, a major energy consumer.
New York's main contract, light sweet crude for delivery in January, leapt 95 cents to $59.75 a barrel in pit trading. New York crude had plunged last Friday to $54.86, the lowest level since June 14, 2005.
In London this evening, Brent North Sea crude for January delivery jumped 99 cents to $59.96 a barrel in electronic deals.
Analysts said that oil prices are gaining support from supply problems in Alaska, where crude oil loading at the main port of Valdez has slowed to only 25% of its usual 800,000 barrels-per-day capacity due to stormy weather. Crude oil loadings at Valdez, Alaska were interrupted on Monday for the third time in a week because of bad weather.
Analysts said the news prompted traders to refocus on the adequacy of US supplies heading into the peak-demand northern hemisphere winter.
London analysts are forecasting that tomorrow's report from the US Department of Energy will show that distillates, including crucial heating fuel, will have sunk by 900,000 barrels last week.
