Brent Crude Prices Rise Above $93 As BP, Statoil, ConocoPhillips Evacuate North Sea Platforms

[hatrack]

Nov. 6 (Bloomberg) -- Crude oil rose above $97 a barrel in New York to a record as a storm forecast to produce 36-foot waves in the North Sea forced BP Plc and ConocoPhillips to evacuate workers and cut production. Conoco and BP said they have started evacuating workers from some facilities before the weather worsens. The North Sea produced 4.4 million barrels of oil a day last year, more than OPEC member Iran. An Energy Department report tomorrow will probably show crude-oil supplies fell 1.5 million barrels last week, according to a Bloomberg News survey.

``All indications point to inventories falling yet again,'' said Gene McGillian, an analyst at TFS Energy LLC in Stamford, Connecticut. ``Overnight the dollar against the euro and the attack on the pipeline in Yemen was a reminder of how precarious supplies are. Now there are evacuations of North Sea platforms, just what we don't need.''

Crude oil for December delivery rose $2.64, or 2.8 percent, to $96.62 barrel at 11:50 a.m. on the New York Mercantile Exchange. Futures climbed to $97.07 today, the highest intraday price since trading began in 1983. Brent crude oil for December settlement rose $2.54, or 2.8 percent, to $93.03 a barrel on the London-based ICE Futures Europe exchange. Brent reached $93.52 a barrel, the highest since trading began in 1988.

Workers on ConocoPhillips' Ekofisk A, B and C platforms, as well as Eldfisk A and B, are being moved to land or to safer sites, said Kurt Mikkelsen, a ConocoPhillips spokesman. BP is moving 150 workers from its Valhall field and expects the platform's 80,000 barrel-a-day oil and gas output to stop late tomorrow, spokesman Jan Erik Geirmo said in an interview.

EDIT

http://www.bloomberg.com/apps/news?pid=20601103&sid=aLsJMa8lqfsc&refer=us

[bananas]

1. ``Chances are that we'll reach $100 but we probably won't stay there long,''

``Chances are that we'll reach $100 but we probably won't stay there long,'' said Antoine Halff, the head of energy research at Fimat USA Inc. in New York. ``The fundamentals haven't tightened much since we were at $75. Prices should also come down because the Saudis are cutting prices to key customers.''

[GliderGuider]

2. "...but we probably won't stay there long" ... this time...

The fundamentals haven't tightened since $75? Remember, we were at $75 in June, 2006 (as well as June 2007). The fundamentals have tightened quite a bit in the last year and a half. The price may be carrying a risk premium of $15 at the moment, but thet steady ratcheting sound you hear has a certain fundamental quality to it.