Reply #4: Crude touches post-Katrina highs

[ozymandius]

Light US crude oil for May delivery touched $70 a barrel in Monday trading in Asia as ongoing political dramas continued to drive commodity markets. Brent crude reached a record $71.40 a barrel.

The post-Hurricane Katrina high for front-month crude came on the back of renewed fears over the consequences of Iran's nuclear programme. At the same time, tensions remain high in the oil-producing areas of Nigeria where large volumes of production remain shut in by rebel groups.

Concerns over output from West Africa - a region from which the US hopes to source 25 per cent of its crude imports in the future - were further exacerbated by events in Chad. Late last week, opposition forces managed to strike the capital N'Djamena and the regime then threatened to cease exports unless an Exxon-Mobil led consortium paid it $100m, in contravention of World Bank controls of the finance flow.

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Silver also pushed higher, tracked by platinum and palladium. Spot silver reached $13.33 an ounce.

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