By Myra P. Saefong, CBS.MarketWatch.com Last Update: 11:38 AM ET Nov. 19, 2004
SAN FRANCISCO (CBS.MW) -- Crude-oil futures climbed above $48 a barrel Friday to their highest level in a week on the back of renewed threats to global supplies from Russia and Iraq.
Russia announced plans Friday to sell off 76.8 percent of Yuganskneftegz, the production unit of Yukos (YUKOF: news, chart, profile) next month. A government newspaper said bids would be accepted starting Friday starting at $8.6 billion. The unit pumps about 1 million barrels a day, or 60 percent of Yukos' oil.
At the same time, news reports say bad weather in Iraq is disrupting oil shipments, said Thorsten Fischer, a senior economist at Economy.com.
Given the fresh threats to inventories, crude for December delivery traded as high as $48.10 a barrel on the New York Mercantile Exchange, its highest level since last Friday. It was last at $48.03, up $1.81, or 3.9 percent.
Still, concerns have started to surface that OPEC may agree to cut production at its meeting in Cairo on Dec. 10, said Tim Evans, a senior analyst at IFR Markets. So far, "Venezuelan energy and mines minister Rafael Ramirez says they would support a cut and Iran is already proposing one," he said.
Added to the mix, OPEC on Thursday revised lower its forecast of what global oil demand growth will be for this year and next, citing a lower rate of worldwide economic growth, among other things.
