NEW YORK, 21 January 2004 — Oil prices hit fresh 10-month highs yesterday as a huge blast at a liquefied natural gas (LNG) plant in Algeria added to concerns over wafer-thin US oil supplies, which are being tested amid bitter winter cold. The explosion in Algeria — the world’s second largest LNG exporter — closed the OPEC member’s largest refinery and main oil export terminal. It has delayed shipment of some cargoes as result of the blast. US light crude futures for February delivery hit a new 10-month high of $36.20 a barrel, up $1.13, the highest level since the US invasion of Iraq in March. London Brent crude futures for March rose 55 cents to trade at $31.12 a barrel.
“Energy markets continue to take support from a strong fundamental picture, with OPEC statements and a deadly blast at the Skikda LNG plant in Algeria adding fresh price-positive news,” said Barclays Capital in a market comment.
