oil prices have risen on south sudan concerns

South Sudan unrest sparks oil price rise

AFP
DECEMBER 26, 2013 12:00AM

OIL prices have risen on concerns that fighting in oil-producer South Sudan could curtail petroleum production.

US benchmark West Texas Intermediate for delivery in February yesterday advanced US31c to $US99.22 a barrel on the New York Mercantile Exchange, before trading closed early because of Christmas.

European benchmark Brent oil for delivery in February gained US34c to $US111.90 a barrel in London.

Oil traders are keeping a close eye on South Sudan, where UN officials say violence has claimed thousands of lives.

UN chief Ban Ki-moon has warned warring factions that reports of crimes against humanity will be investigated. He has also asked the Security Council to nearly double the size of the UN mission in the country.

Robert Yawger, director of energy futures at Mizuho Securities, said South Sudan usually exported about 220,000 barrels a day to Japan, Malaysia and China. "The rumour supposedly is that these barrels are still exporting," he said. "But they could start scaling back any day."

JBC Energy, in a note to clients, said the "risk of an all-out civil war that could stymie the country's production of around 250,000 barrels per day is growing".

After retreating in the past few months, oil prices have rallied over much of the past week on better economic data and continued supply problems in Libya.

The weekly report on US oil inventories will be released tomorrow instead of yesterday because of Christmas. Analysts project US supplies fell 2.2 million barrels, according to a survey by The Wall Street Journal.

http://www.theaustralian.com.au/business/markets/south-sudan-unrest-sparks-oil-price-rise/story-e6frg916-1226789789277