Commodities

Brent crude jumps to $118 due to floods in US

PTI Singapore | Updated on May 11, 2011 Published on May 11, 2011

Crude extended gains in the Asian trade today on fears that the record floods might affect refineries along the Mississippi River in the United States, analysts said.

New York’s main contract, light sweet crude for delivery in June, rose 14 cents to $104.02 a barrel in the morning trade. Brent North Sea crude for June delivery gained 23 cents to $117.86.

“Oil settled higher in the US yesterday and is a little bit up (in Asia) following floods in Mississippi,” said Ms Shailaja Nair, a Singapore-based oil analyst from energy information provider Platts.

“There are refineries along the Mississippi River. Cutting their operating capacity will be a big factor in oil prices.”

She added that the Mississippi, experiencing its worst flooding since 1925, is also a major transport line for Louisiana, which hosts at least two refineries and hundreds of oil and gas wells.

“This is a very serious flood,” the Louisiana Governor, Mr Bobby Jindal, said.

Published on May 11, 2011
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